Mumbai: Insurance companies will now have more leeway to invest in sectors such as IT and pharma. The Insurance Regulatory and Development Authority has increased the sector specific exposure limit for investments by insurers from 15 per cent to 20 per cent of their total investment.
Hitherto, insurers, both life and non-life, were permitted to take an exposure in a specific sector up to 15 per cent of their investments (which includes debt and equity), with the exception of banking and financial services where the limit is 25 per cent and infrastructure where there is no exposure limit.
According to IRDA investment norms, at any point of time, insurers are permitted to have excess weightage beyond 15 per cent in only one industrial sector (except BFSI and infrastructure sectors).In a circular issued on Wednesday, the regulator observed that the industrial weightage vis-a-vis the benchmark indices is dynamic and at present the IT industry contributes more than 15 per cent to the benchmark indices. As the weightage keeps on changing from time to time, the regulator said it has decided to give general permission to have a further exposure of 5 per cent in one industrial sector (not applicable to BFSI).
“This was a long pending request from the industry. We will be now able to allocate more funds to other sectors such as IT and pharma, which have been performing very well,” said the chief investment officer of a private life insurer.
For raising the investments in a specific sector, insurers are required to take prior permission from their board.
IRDA also relaxed norms for fixed deposit investments in the promoter group of insurance companies.
“Considering the representations from the industry and the Life Insurance Council, we have decided to permit fixed deposits, as stated in the regulations, in promoter group scheduled banks within the 5 per cent limit prescribed for Promoter Group subject to the overall limits,” said the regulator.
Success in my Habit
Thursday, October 31, 2013
India Inc raises Rs 1.70 lakh crore in first half of the current fiscal
Mumbai: Indian corporates raised Rs1.70 lakh crore through commercial papers (CPs) during the first half of the current fiscal. A total of 169 issuers raised this amount, which was down 15% from Rs 2.01 lakh crore raised by 184 issuers in comparable period of the previous fiscal, a report by Prime Database, the country's premier database on primary capital market, noted.
CPs are unsecured money market instruments issued to raise short-term funds with maturity period of less than one year. According to Pranav Haldea, MD, Prime, fund raising through CPs, which had witnessed a lot of buoyancy in the last two years, nearly dried up after RBI in mid-July raised the lending rates by 200 basis points (100 basis points = 1 percentage point) under the marginal standing facility, which is a penal lending rate.
"This had pushed up the short-term rates by more than 300 basis points, making it unviable for companies to borrow from the markets," Haldea said. The subsequent easing of short-term rates has again led to companies going to the CP market in place of higher-cost borrowings from banks, the report said. "Funds raised through CP, which were at Rs 36,702 crore in June but fell to Rs 29,520 crore in July and further to just Rs 7,652 crore in August, saw a reversal of trend in September with Rs 18,684 crore being raised," he said.
CPs are unsecured money market instruments issued to raise short-term funds with maturity period of less than one year. According to Pranav Haldea, MD, Prime, fund raising through CPs, which had witnessed a lot of buoyancy in the last two years, nearly dried up after RBI in mid-July raised the lending rates by 200 basis points (100 basis points = 1 percentage point) under the marginal standing facility, which is a penal lending rate.
"This had pushed up the short-term rates by more than 300 basis points, making it unviable for companies to borrow from the markets," Haldea said. The subsequent easing of short-term rates has again led to companies going to the CP market in place of higher-cost borrowings from banks, the report said. "Funds raised through CP, which were at Rs 36,702 crore in June but fell to Rs 29,520 crore in July and further to just Rs 7,652 crore in August, saw a reversal of trend in September with Rs 18,684 crore being raised," he said.
Pharmaceuticals Purchase Policy (PPP) for pharmaceutical central public sector enterprises
New Delhi: The Union Cabinet today approved the Pharmaceuticals Purchase Policy (PPP), for a period of five years.
The renewal of the PPP aims at ensuring optimum utilization of the installed capacity of the pharma CPSEs. It would not only provide necessary fillip in reviving these CPSEs, which are ailing but also ensure availability of quality medicines at low prices to the masses besides ensuring drug security of the nation.
The salient features of the Pharmaceuticals Purchase Policy (PPP), are as follows:
i) Pharmaceuticals Purchase Policy in respect of 103 medicines would be valid for a period of five years from the date of issue of orders by Department of Pharmaceuticals.
ii) Pharmaceuticals Purchase Policy will extend only to Central Public Sector Enterprises (CPSEs) under the administrative control of Department of Pharmaceuticals such as Indian Drugs and Pharmaceuticals Limited (IDPL), Hindustan Antibiotics Limited (HAL), Bengal Chemicals and Pharmaceuticals Limited (BCPL), Karnataka Antibiotics and Pharmaceuticals Limited (KAPL) and Rajasthan Drugs and Pharmaceuticals Limited (RDPL) and their subsidiaries where Government of India owns 51% or above shares.
iii) This would be applicable to purchases by Central Government departments, their Public Sector Undertakings, and Autonomous Bodies, etc. This would also be applicable to purchase of medicines by State Governments under Health Programmes funded by Government of India such as the National Rural Health Mission etc.
iv) The pricing of the products would be done by National Pharmaceutical Pricing Authority (NPPA) using the cost based formula, as mentioned in the Drugs Price Control Order, 95. A uniform discount of 16% would be extended to all products. All the taxes, whatsoever, would have to be passed on to buyers.
v) Annual revision of prices would be linked to Wholesale Price Index as per provisions contained in Drugs Prices Control Order, 2013.
vi) The procuring entity would purchase from pharma CPSEs and their subsidiaries subject to their meeting Good Manufacturing Practices (GMP) norms as per Schedule 'M' of the Drugs & Cosmetic Rules.
vii) In case pharma CPSEs and their subsidiaries fail to supply the medicines, the procuring entity would be at liberty to make purchases from other manufacturers. If the pharma CPSEs or their subsidiaries fail to perform as per the purchase order, they would also be subject to payment of liquidated damages or any other penalty as per the terms of the contract.
viii) The list of medicines may be reviewed and revised by the Department of Pharmaceuticals as per requirement.
The renewal of the PPP aims at ensuring optimum utilization of the installed capacity of the pharma CPSEs. It would not only provide necessary fillip in reviving these CPSEs, which are ailing but also ensure availability of quality medicines at low prices to the masses besides ensuring drug security of the nation.
The salient features of the Pharmaceuticals Purchase Policy (PPP), are as follows:
i) Pharmaceuticals Purchase Policy in respect of 103 medicines would be valid for a period of five years from the date of issue of orders by Department of Pharmaceuticals.
ii) Pharmaceuticals Purchase Policy will extend only to Central Public Sector Enterprises (CPSEs) under the administrative control of Department of Pharmaceuticals such as Indian Drugs and Pharmaceuticals Limited (IDPL), Hindustan Antibiotics Limited (HAL), Bengal Chemicals and Pharmaceuticals Limited (BCPL), Karnataka Antibiotics and Pharmaceuticals Limited (KAPL) and Rajasthan Drugs and Pharmaceuticals Limited (RDPL) and their subsidiaries where Government of India owns 51% or above shares.
iii) This would be applicable to purchases by Central Government departments, their Public Sector Undertakings, and Autonomous Bodies, etc. This would also be applicable to purchase of medicines by State Governments under Health Programmes funded by Government of India such as the National Rural Health Mission etc.
iv) The pricing of the products would be done by National Pharmaceutical Pricing Authority (NPPA) using the cost based formula, as mentioned in the Drugs Price Control Order, 95. A uniform discount of 16% would be extended to all products. All the taxes, whatsoever, would have to be passed on to buyers.
v) Annual revision of prices would be linked to Wholesale Price Index as per provisions contained in Drugs Prices Control Order, 2013.
vi) The procuring entity would purchase from pharma CPSEs and their subsidiaries subject to their meeting Good Manufacturing Practices (GMP) norms as per Schedule 'M' of the Drugs & Cosmetic Rules.
vii) In case pharma CPSEs and their subsidiaries fail to supply the medicines, the procuring entity would be at liberty to make purchases from other manufacturers. If the pharma CPSEs or their subsidiaries fail to perform as per the purchase order, they would also be subject to payment of liquidated damages or any other penalty as per the terms of the contract.
viii) The list of medicines may be reviewed and revised by the Department of Pharmaceuticals as per requirement.
CCEA approves Rs 500 cr for ‘green’ scheme for textile units
New Delhi: The Cabinet Committee on Economic Affairs (CCEA) has approved an Integrated Processing Development Scheme (IPDS) with a corpus of Rs 500 crore to make textile processing units more environment-friendly and globally competitive.
The fund will be used to set up four to six brownfield projects and three to five greenfield projects over the 12th Plan period addressing environmental issues faced by textile processing units, a Government release said.
The eligible projects under the scheme would cover Common Effluent Treatment Plants, captive power generation on technology preferably renewable/green technology, infrastructure such as storm water management, necessary roads and pipelines for water & wastewater and, facility for testing and R&D centres, the release added.
The scheme will support upgradation of existing processing clusters/centres specifically in the area of water and waste water management and also encourage research and development work in the textiles processing sector.
The fund will be used to set up four to six brownfield projects and three to five greenfield projects over the 12th Plan period addressing environmental issues faced by textile processing units, a Government release said.
The eligible projects under the scheme would cover Common Effluent Treatment Plants, captive power generation on technology preferably renewable/green technology, infrastructure such as storm water management, necessary roads and pipelines for water & wastewater and, facility for testing and R&D centres, the release added.
The scheme will support upgradation of existing processing clusters/centres specifically in the area of water and waste water management and also encourage research and development work in the textiles processing sector.
Railway Ministry sets up High Speed Rail Corp.
New Delhi: The Railway Ministry has formed a High Speed Rail Corporation, which will evaluate ways to implement high-speed train projects in India.
Incidentally, this is not the first such body announced by the Ministry. Earlier, the Ministry had announced formation of a High Speed Railway Authority to do a similar task. According to Ministry officials, both organisations will co-exist.
“The two institutions will co-exist. HSRA will be under the Ministry of Railways to form standards on ticketing, tracks, rolling stock, while HSRC will be under Rail Vikas Nigam Ltd and will be an institution that will do ground level work,” said Railway Board Chairman Arunendra Kumar. Kumar also added that HSRA is a medium to set technology standard, “but we need not wait for HSRA, as we have Railway Design and Standards Organisation (RDSO), a body which sets such standards.”
However, an official press release of Railway Ministry stated that HSRC (and not HSRA) would undertake project activities such as preparation of project related studies and technical standards high speed rail corridors.
Kumar avoided a clear reply on which body will come first: HSRA or HSRC, but indications are that HSRC will be operational first.
Safety measures
Meanwhile, Railway Minister Mallikarjun Kharge said that while it is good to have high-speed railway systems, India should not rush into adopting some high speed rail technology just because it is cheap. It is important to be aware of the safety aspect, he said.
“Today, we have started the process. Later on its terms and condition, appointment of members, other things will be decided,” Kharge said.
Indicating that full costs of high speed rail technology may not be clear upfront, he added, “One should not buy horses because horse shoes are freely available. We should not get even if it is available free. Some time they sell it to buyers saying it is cheap. We should think whether it suits or not even if it is free or cheap.”
Incidentally, this is not the first such body announced by the Ministry. Earlier, the Ministry had announced formation of a High Speed Railway Authority to do a similar task. According to Ministry officials, both organisations will co-exist.
“The two institutions will co-exist. HSRA will be under the Ministry of Railways to form standards on ticketing, tracks, rolling stock, while HSRC will be under Rail Vikas Nigam Ltd and will be an institution that will do ground level work,” said Railway Board Chairman Arunendra Kumar. Kumar also added that HSRA is a medium to set technology standard, “but we need not wait for HSRA, as we have Railway Design and Standards Organisation (RDSO), a body which sets such standards.”
However, an official press release of Railway Ministry stated that HSRC (and not HSRA) would undertake project activities such as preparation of project related studies and technical standards high speed rail corridors.
Kumar avoided a clear reply on which body will come first: HSRA or HSRC, but indications are that HSRC will be operational first.
Safety measures
Meanwhile, Railway Minister Mallikarjun Kharge said that while it is good to have high-speed railway systems, India should not rush into adopting some high speed rail technology just because it is cheap. It is important to be aware of the safety aspect, he said.
“Today, we have started the process. Later on its terms and condition, appointment of members, other things will be decided,” Kharge said.
Indicating that full costs of high speed rail technology may not be clear upfront, he added, “One should not buy horses because horse shoes are freely available. We should not get even if it is available free. Some time they sell it to buyers saying it is cheap. We should think whether it suits or not even if it is free or cheap.”
Scania sets up assembly plant in India
New Delhi: Sweden's Scania Commercial Vehicles has set up an assembly plant in India to manufacture about 2,500 heavy haulage trucks besides 1,000 inter-city buses and coaches annually at a factory near Bangalore. Currently the localisation is 18% for trucks and 100% for bus bodies, the company said, adding that initial investments will be Rs 250 crore.
The facility will serve as the company's head office and centre for all commercial operations . The operations will consist of final assembly of trucks with bodywork and building of complete coaches along with a service workshop and a central parts warehouse.
The facility will serve as the company's head office and centre for all commercial operations . The operations will consist of final assembly of trucks with bodywork and building of complete coaches along with a service workshop and a central parts warehouse.
McNally Bharat Africa unit wins Rs 229-cr order
Kolkata: McNally Bharat Engineering Co Ltd has said its South African subsidiary has received an order worth Rs 229 crore to set up a fluorspar beneficiation plant for miner Sephaku Fluoride Ltd in that country.
McNally Bharat Engineering (SA) Proprietary Ltd will have to execute the project in 21 months.
Fluorspar is a basic raw material in the chemical, metallurgical, and ceramic industries and beneficiation refers to crushing and separating ore into valuable substances or waste.
McNally Bharat had won a related order earlier this month from the same miner for supplying a 0.6-million-tonne fluorspar concentrate plant worth Rs 280.7 crore.
Sephaku Fluoride is a subsidiary of the Johannesburg Stock Exchange-listed Sephaku Holdings Ltd.
Both plants are for a fluorspar mining project of Sephaku, located in the Gauteng Province of South Africa.
McNally Bharat will have to set up the concentrate plant at the mine site in 15 months.
For the BM Khaitan Group engineering company, these two orders are the biggest value export packages
McNally Bharat Engineering (SA) Proprietary Ltd will have to execute the project in 21 months.
Fluorspar is a basic raw material in the chemical, metallurgical, and ceramic industries and beneficiation refers to crushing and separating ore into valuable substances or waste.
McNally Bharat had won a related order earlier this month from the same miner for supplying a 0.6-million-tonne fluorspar concentrate plant worth Rs 280.7 crore.
Sephaku Fluoride is a subsidiary of the Johannesburg Stock Exchange-listed Sephaku Holdings Ltd.
Both plants are for a fluorspar mining project of Sephaku, located in the Gauteng Province of South Africa.
McNally Bharat will have to set up the concentrate plant at the mine site in 15 months.
For the BM Khaitan Group engineering company, these two orders are the biggest value export packages
Vodafone to invest Rs 10,141 cr to raise stake in Indian arm to 100%
New Delhi: British telecom major Vodafone Plc on Tuesday sought the Foreign Investment Promotion Board’s (FIPB’s) approval to bring in Rs 10,141 crore to raise its 64 per cent equity stake in Vodafone India to 100 per cent.
According to its application, Vodafone India has been valued at Rs 28,469.9 crore, compared with Rs 54,672.72 crore in February last year, when Ajay Piramal-controlled Piramal Enterprises had paid Rs 3,007 crore for a 5.5 per cent stake in the company. So, if the existing stakeholders — Piramal Enterprises, Max Group’s Analjit Singh, IDFC and other independent investors — exit at the current valuation, they get 47.9 per cent less than what they would have got in February 2012.
When Piramal Enterprises had bought its second tranche of 5.5 per cent stake in Vodafone India, it had said it expected to get 17-20 per cent return on its investment. Apart from Piramal, Analjit Singh holds 6.2 per cent in the company while IDFC and other individual investors own the remaining 18.8 per cent.
Vodafone’s application to buy out its Indian subsidiary’ partners has come within two months of the government allowing 100 per cent foreign ownership in an Indian telecom company. It is the second foreign telco seeking permission to do so, after Singapore’s SingTel recently received FIPB’s approval to buy Bharti Airtel’s 9.9 per cent stake in a joint venture for international long distance calls.
Earlier, in its 2012 annual report, Vodafone Plc had said it would pay Piramal Enterprises between Rs 7,000 crore and Rs 8,300 crore for its 11 per cent stake if the latter was not given an exit through an initial public offering between August 18, 2013, and February 8, 2014, or if Piramal chose not to participate in an exit through IPO.
According to the annual report, the company had benchmarked the valuation of its Indian entity between Rs 63,636 crore and Rs 75,454 crore. Compared to this valuation, the current value is 55-62 per cent lower.
“The value Vodafone has shown today is not justified. It could have been based on the company’s individual agreements with the investors at the time of their investments. Also, the previous valuations could have included the expected return from the 3G business, which did not actually come,” said a partner with a Gurgaon-headquartered management consulting firm. “How can Vodafone be valued at this price when Idea Cellular is valued at Rs 10 billion (about Rs 61,455 crore at Tuesday’s conversion rate),” he asked.
Industry experts attribute the erosion in valuation to Vodafone’s low 3G subscriber base. According to PhilipCapital India, in 2012-13, Vodafone India was fourth among operators in 3G user base (with 3.3 million users), while Bharti Airtel had 6.4 million and Reliance Communications (RCom) 7.2 million 3G users.
Prashant Singhal, telecom expert at Ernst & Young said: “This (Vodafone’s proposal) will improve the market sentiment in general — not for its valuation, but due to foreign investments coming in the sector.”
Confirming the move, a spokesperson for Vodafone Plc said: “We have always said we would like to increase our holding in the business and this further investment demonstrates Vodafone’s long-term commitment to India. The total inflow of foreign investment into India as a result of the proposed transactions will be approximately Rs 10,141 crore.”
When contacted, Ajay Piramal said: “I am confirming that we are getting our returns, but I will not be able to share any more information than that.” He refused to comment more on the issue.
Some analysts say the valuations are very conservative and hint at transfer-pricing issues. “The valuation is, in fact, much lower than conservative estimates. This low valuation might open a Pandora’s box, as it is too good to be true,” said Alok Shende, principal consultant and co-founder, Ascentius Consulting.
But Supreme Court advocate and tax expert H P Ranina says: “I don’t think there will be an issue with this, as they are not related parties and there is no associated person. According to the income-tax laws, if there is no associated person, transfer-pricing rules do not apply, he adds.
Kunal Bajaj, an independent analyst, says: “Vodafone is a private company and the owner of the shares can sell it at a valuation it wants.”
The British telco also announced that it would consider providing additional funding to Vodafone India by subscribing to equity shares of the Indian entity, after it had got 100 per cent equity control. “Looking ahead, Vodafone will continue to invest in India to bring the benefits of mobile communications and financial inclusion to more people across the country,” the spokesperson said, declining to give further details.
According to its application, Vodafone India has been valued at Rs 28,469.9 crore, compared with Rs 54,672.72 crore in February last year, when Ajay Piramal-controlled Piramal Enterprises had paid Rs 3,007 crore for a 5.5 per cent stake in the company. So, if the existing stakeholders — Piramal Enterprises, Max Group’s Analjit Singh, IDFC and other independent investors — exit at the current valuation, they get 47.9 per cent less than what they would have got in February 2012.
When Piramal Enterprises had bought its second tranche of 5.5 per cent stake in Vodafone India, it had said it expected to get 17-20 per cent return on its investment. Apart from Piramal, Analjit Singh holds 6.2 per cent in the company while IDFC and other individual investors own the remaining 18.8 per cent.
Vodafone’s application to buy out its Indian subsidiary’ partners has come within two months of the government allowing 100 per cent foreign ownership in an Indian telecom company. It is the second foreign telco seeking permission to do so, after Singapore’s SingTel recently received FIPB’s approval to buy Bharti Airtel’s 9.9 per cent stake in a joint venture for international long distance calls.
Earlier, in its 2012 annual report, Vodafone Plc had said it would pay Piramal Enterprises between Rs 7,000 crore and Rs 8,300 crore for its 11 per cent stake if the latter was not given an exit through an initial public offering between August 18, 2013, and February 8, 2014, or if Piramal chose not to participate in an exit through IPO.
According to the annual report, the company had benchmarked the valuation of its Indian entity between Rs 63,636 crore and Rs 75,454 crore. Compared to this valuation, the current value is 55-62 per cent lower.
“The value Vodafone has shown today is not justified. It could have been based on the company’s individual agreements with the investors at the time of their investments. Also, the previous valuations could have included the expected return from the 3G business, which did not actually come,” said a partner with a Gurgaon-headquartered management consulting firm. “How can Vodafone be valued at this price when Idea Cellular is valued at Rs 10 billion (about Rs 61,455 crore at Tuesday’s conversion rate),” he asked.
Industry experts attribute the erosion in valuation to Vodafone’s low 3G subscriber base. According to PhilipCapital India, in 2012-13, Vodafone India was fourth among operators in 3G user base (with 3.3 million users), while Bharti Airtel had 6.4 million and Reliance Communications (RCom) 7.2 million 3G users.
Prashant Singhal, telecom expert at Ernst & Young said: “This (Vodafone’s proposal) will improve the market sentiment in general — not for its valuation, but due to foreign investments coming in the sector.”
Confirming the move, a spokesperson for Vodafone Plc said: “We have always said we would like to increase our holding in the business and this further investment demonstrates Vodafone’s long-term commitment to India. The total inflow of foreign investment into India as a result of the proposed transactions will be approximately Rs 10,141 crore.”
When contacted, Ajay Piramal said: “I am confirming that we are getting our returns, but I will not be able to share any more information than that.” He refused to comment more on the issue.
Some analysts say the valuations are very conservative and hint at transfer-pricing issues. “The valuation is, in fact, much lower than conservative estimates. This low valuation might open a Pandora’s box, as it is too good to be true,” said Alok Shende, principal consultant and co-founder, Ascentius Consulting.
But Supreme Court advocate and tax expert H P Ranina says: “I don’t think there will be an issue with this, as they are not related parties and there is no associated person. According to the income-tax laws, if there is no associated person, transfer-pricing rules do not apply, he adds.
Kunal Bajaj, an independent analyst, says: “Vodafone is a private company and the owner of the shares can sell it at a valuation it wants.”
The British telco also announced that it would consider providing additional funding to Vodafone India by subscribing to equity shares of the Indian entity, after it had got 100 per cent equity control. “Looking ahead, Vodafone will continue to invest in India to bring the benefits of mobile communications and financial inclusion to more people across the country,” the spokesperson said, declining to give further details.
Indian businesses turn to IT to fuel growth: Study
Mumbai: Nearly nine out of every 10 (89 per cent) respondents in India believe that cloud computing or ‘as-a-service’ approach, is relevant to their organisation, according to a study by VMware.
The study ‘VMware Cloud Index’ also states that nearly eight out of every 10 (79 per cent) respondents in India have a cloud-related initiative in place within the organisation, or are planning to implement cloud in the next 12 months.
Indian organisations are turning to IT to help them grow the business in the current economic environment. IT is seen as a change enabler and source of business value for organisations by 85 per cent of the respondents.
In terms of the top business priorities in India over the next 12 months, 87 per cent of IT decision makers said improving the quality and capabilities of their products and 85 per cent said addressing the rising expectations of customers and improving customer satisfaction. The study also shows that the current perception of IT remains positive in India with 63 per cent of respondents noting that the perceived credibility, influence and power of the CIO in their organisation is increasing.
The study ‘VMware Cloud Index’ also states that nearly eight out of every 10 (79 per cent) respondents in India have a cloud-related initiative in place within the organisation, or are planning to implement cloud in the next 12 months.
Indian organisations are turning to IT to help them grow the business in the current economic environment. IT is seen as a change enabler and source of business value for organisations by 85 per cent of the respondents.
In terms of the top business priorities in India over the next 12 months, 87 per cent of IT decision makers said improving the quality and capabilities of their products and 85 per cent said addressing the rising expectations of customers and improving customer satisfaction. The study also shows that the current perception of IT remains positive in India with 63 per cent of respondents noting that the perceived credibility, influence and power of the CIO in their organisation is increasing.
Government approves thirteen proposals of foreign direct investment (FDI) amounting to about Rs 1258.53 crore
Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on September 19, 2013, Government has approved thirteen (13) proposals of Foreign Direct Investment (FDI) amounting to Rs. 1258.53 crore approximately.
In addition, one proposal viz., M/s Axis Bank Ltd. Ahmedabad, amounting to Rs. 6265.76 crore has been recommended for consideration of Cabinet Committee on Economic Affairs (CCEA).
Details of proposals in the Foreign Investment Promotion Board (FIPB) Meeting held on 19.9.2013.
Following thirteen (13) proposals have been approved:
Sl. No. Name of the applicant Particulars of the proposal FDI/NRI inflows (Rs. in crore)
1 M/s Indian Rotocraft Pvt. Ltd. Amendment in the approved activities of the previous FC approval letter to replace the helicopter model as AW 119Kx, the upgraded model, in place of AW 119Ke, the discontinued model. Nil
2 M/s BF Elbit Advanced Systems Pvt. Ltd., Pune Induction of foreign equity in defence sector. 37.44 (US $ 6 million)
3 M/s Camson Bio Technologies Ltd., Karnataka Issue of warrants to a foreign collaborator in the business of agricultural biotechnology. 32.18
4 M/s SD Bio Standard Dignostics Ltd Infusion of additional FDI in an existing foreign owned pharma company. 27.5
5 M/s Shantha Biotechnics Pvt. Ltd. An existing foreign investor in a brownfield pharma company to buy out the shares held by NRIs and Indian residents and to infuse fresh equity investment. 755.00
6 M/s Empays Payment System India Pvt. Ltd., Mumbai To set-up a Multi- Bank Payment System using the Instant Mobile Transfer System (IMT). 27.50
7 M/s Equitas Holdings Pvt. Ltd. A holding-cum-investment company in microfinance sector to increase FDI by issuance of equity shares and new foreign investors. 222.80
8 M/s Jaguar-Max Security Solutions Pvt. Ltd., New Delhi Induction of foreign investment to carry out the business of Private Security Services company. 0.11
9 M/s Stork Titanium Pvt. Ltd., New Delhi Induction of foreign investment to carry out the business of manufacturing, trading and dealing in titanium products. 156.00 (US $ 25 Million)
10 M/s Styrolution South East Asia Pte. Ltd., Singapore NR to NR transfer of shares within a group company by way of a block deal on the special trading window of BSE Ltd., /NSE Limited. Nil
11 M/s HCL Technologies Ltd., New Delhi Induction of direct foreign investment in its own total paid-up equity share capital and consequent indirect foreign investment in its wholly owned subsidiary. Nil
12 M/s Cable & Wireless Pvt. Ltd. Overseas group restructuring in telecom Sector Company without change in approved FDI/cap/investor. Nil
13 M/s Multi Screen Media Pvt. Ltd. To increase the foreign equity participation for production of television programmes in Indian and downlinking certain TV channels. Nil
The following eight (8) proposals have been recommended to be deferred:
Sl. No. Name of the applicant Particulars of the proposal
1 M/s SasMos Het Technologies Ltd., Bangalore Post facto approval to undertake manufacturing of electronic warfare subsystems, parts and accessories for airborne ground and naval application etc.
2 M/s Jubilant Aeronatics Pvt. Ltd. Amendment in the approved activities of the approval letter in defence sector.
3 M/s Kinedex Healthcare Pvt. Ltd., Jaipur Post facto approval for induction of foreign equity in the existing Indian pharma company.
4 M/s Laurus Labs Pvt. Ltd., Hyderabad Downstream investment in an Indian pharmaceutical company by way of subscription to fresh allotment of equity shares.
5 M/s Soma Tollways Pvt. Ltd. Post facto approval for increase in foreign equity in an investing company.
6 M/s M.D. Shajahan Bablu, Bangladesh Bangladesh nationals to incorporate a company in India with 100% FDI to engage in trading of Raw Jute and Jute Products and Agro based products.
7 M/s Green Destinations Holdings, Mauritius NR to NR transfer of shares before the expiry of lock-in period.
8 M/s Monsoon Capital LLC, USA To make FDI investments directly or indirectly in an Indian Trust.
The following two (2) proposals have been recommended for rejection:
Sl. No. Name of the applicant Particulars of the proposal
1 M/s Sundaram Ramaswamy, Gurgaon Conversion of an existing Indian Company into a LLP and additional FDI infusion.
2 M/s SQS India Infosystems Pvt. Ltd., Pune Post-facto approval for swap of shares to carry out the business of Software Testing Services.
The following one (1) proposals have been advised to access automatic route.
Sl. No. Name of the applicant Particulars of the proposal
1 M/s Octania Aerostructure Group Pvt. Ltd., New Delhi To issue equity shares to a foreign investor in lieu of technology transfer/knowhow to set up an aerospace machining and treatments company.
The following one (1) proposal has been advised that FIPB approval is not required:
Sl. No. Name of the applicant Particulars of the proposal
1 M/s Advanta Pvt. Ltd. Post-facto approval for induction of foreign investment into the company to carry out the business of Research, Production and marketing of hybrid seeds.
The following one (1) proposal has been recommended to advise the applicant that the proposal is not within the purview of FIPB:
Sl. No. Name of the applicant Particulars of the proposal
1 M/s Artura Pharmaceuticals Pvt. Ltd., Tamil Nadu Post-facto approval for delay of 6 months and 2 days in receiving part of the consideration for the issue of equity shares in an existing pharma company.
Decisions in the following five (5) proposals have been kept in abeyance
Sl. No. Name of the applicant Particulars of the proposal
1 M/s Brampton Pvt. Ltd. Clarification regarding limit on percentage of shareholding to be held either by Indian partner or foreign partner for forming the joint venture company.
2 M/s Acebright (India) Pharma Pvt. Ltd., Karnataka A foreign owned Indian pharma company to receive additional foreign investment by way of fresh issue and transfer. Post-facto approval is also sought for an earlier transfer.
3 M/s Manipal Technologies Ltd., Karnataka Induction of foreign investment in order to invest in the subsidiary to enter into cards payment system management and processing services for all kinds of alternate delivery channels including ATM.
4 M/s AU Housing Finance Limited, Jaipur An Indian Housing Finance Company proposes to increase direct and indirect foreign investment upto 95%, without meeting the minimum capitalization norm of USD 50 million.
5 M/s Aerrianta International CPT, Ireland To set up a 50:50 JV company to engage in running duty free shops at Mumbai airport.
The following one (1) proposal has been recommended for the consideration of CCEA, as the investment involved in the proposal is above Rs. 1200 crore.
1 M/s Axis Bank Limited, Ahmedabad A private bank proposes to increase the foreign equity from the existing 49% to 62%. 6265.76
In addition, one proposal viz., M/s Axis Bank Ltd. Ahmedabad, amounting to Rs. 6265.76 crore has been recommended for consideration of Cabinet Committee on Economic Affairs (CCEA).
Details of proposals in the Foreign Investment Promotion Board (FIPB) Meeting held on 19.9.2013.
Following thirteen (13) proposals have been approved:
Sl. No. Name of the applicant Particulars of the proposal FDI/NRI inflows (Rs. in crore)
1 M/s Indian Rotocraft Pvt. Ltd. Amendment in the approved activities of the previous FC approval letter to replace the helicopter model as AW 119Kx, the upgraded model, in place of AW 119Ke, the discontinued model. Nil
2 M/s BF Elbit Advanced Systems Pvt. Ltd., Pune Induction of foreign equity in defence sector. 37.44 (US $ 6 million)
3 M/s Camson Bio Technologies Ltd., Karnataka Issue of warrants to a foreign collaborator in the business of agricultural biotechnology. 32.18
4 M/s SD Bio Standard Dignostics Ltd Infusion of additional FDI in an existing foreign owned pharma company. 27.5
5 M/s Shantha Biotechnics Pvt. Ltd. An existing foreign investor in a brownfield pharma company to buy out the shares held by NRIs and Indian residents and to infuse fresh equity investment. 755.00
6 M/s Empays Payment System India Pvt. Ltd., Mumbai To set-up a Multi- Bank Payment System using the Instant Mobile Transfer System (IMT). 27.50
7 M/s Equitas Holdings Pvt. Ltd. A holding-cum-investment company in microfinance sector to increase FDI by issuance of equity shares and new foreign investors. 222.80
8 M/s Jaguar-Max Security Solutions Pvt. Ltd., New Delhi Induction of foreign investment to carry out the business of Private Security Services company. 0.11
9 M/s Stork Titanium Pvt. Ltd., New Delhi Induction of foreign investment to carry out the business of manufacturing, trading and dealing in titanium products. 156.00 (US $ 25 Million)
10 M/s Styrolution South East Asia Pte. Ltd., Singapore NR to NR transfer of shares within a group company by way of a block deal on the special trading window of BSE Ltd., /NSE Limited. Nil
11 M/s HCL Technologies Ltd., New Delhi Induction of direct foreign investment in its own total paid-up equity share capital and consequent indirect foreign investment in its wholly owned subsidiary. Nil
12 M/s Cable & Wireless Pvt. Ltd. Overseas group restructuring in telecom Sector Company without change in approved FDI/cap/investor. Nil
13 M/s Multi Screen Media Pvt. Ltd. To increase the foreign equity participation for production of television programmes in Indian and downlinking certain TV channels. Nil
The following eight (8) proposals have been recommended to be deferred:
Sl. No. Name of the applicant Particulars of the proposal
1 M/s SasMos Het Technologies Ltd., Bangalore Post facto approval to undertake manufacturing of electronic warfare subsystems, parts and accessories for airborne ground and naval application etc.
2 M/s Jubilant Aeronatics Pvt. Ltd. Amendment in the approved activities of the approval letter in defence sector.
3 M/s Kinedex Healthcare Pvt. Ltd., Jaipur Post facto approval for induction of foreign equity in the existing Indian pharma company.
4 M/s Laurus Labs Pvt. Ltd., Hyderabad Downstream investment in an Indian pharmaceutical company by way of subscription to fresh allotment of equity shares.
5 M/s Soma Tollways Pvt. Ltd. Post facto approval for increase in foreign equity in an investing company.
6 M/s M.D. Shajahan Bablu, Bangladesh Bangladesh nationals to incorporate a company in India with 100% FDI to engage in trading of Raw Jute and Jute Products and Agro based products.
7 M/s Green Destinations Holdings, Mauritius NR to NR transfer of shares before the expiry of lock-in period.
8 M/s Monsoon Capital LLC, USA To make FDI investments directly or indirectly in an Indian Trust.
The following two (2) proposals have been recommended for rejection:
Sl. No. Name of the applicant Particulars of the proposal
1 M/s Sundaram Ramaswamy, Gurgaon Conversion of an existing Indian Company into a LLP and additional FDI infusion.
2 M/s SQS India Infosystems Pvt. Ltd., Pune Post-facto approval for swap of shares to carry out the business of Software Testing Services.
The following one (1) proposals have been advised to access automatic route.
Sl. No. Name of the applicant Particulars of the proposal
1 M/s Octania Aerostructure Group Pvt. Ltd., New Delhi To issue equity shares to a foreign investor in lieu of technology transfer/knowhow to set up an aerospace machining and treatments company.
The following one (1) proposal has been advised that FIPB approval is not required:
Sl. No. Name of the applicant Particulars of the proposal
1 M/s Advanta Pvt. Ltd. Post-facto approval for induction of foreign investment into the company to carry out the business of Research, Production and marketing of hybrid seeds.
The following one (1) proposal has been recommended to advise the applicant that the proposal is not within the purview of FIPB:
Sl. No. Name of the applicant Particulars of the proposal
1 M/s Artura Pharmaceuticals Pvt. Ltd., Tamil Nadu Post-facto approval for delay of 6 months and 2 days in receiving part of the consideration for the issue of equity shares in an existing pharma company.
Decisions in the following five (5) proposals have been kept in abeyance
Sl. No. Name of the applicant Particulars of the proposal
1 M/s Brampton Pvt. Ltd. Clarification regarding limit on percentage of shareholding to be held either by Indian partner or foreign partner for forming the joint venture company.
2 M/s Acebright (India) Pharma Pvt. Ltd., Karnataka A foreign owned Indian pharma company to receive additional foreign investment by way of fresh issue and transfer. Post-facto approval is also sought for an earlier transfer.
3 M/s Manipal Technologies Ltd., Karnataka Induction of foreign investment in order to invest in the subsidiary to enter into cards payment system management and processing services for all kinds of alternate delivery channels including ATM.
4 M/s AU Housing Finance Limited, Jaipur An Indian Housing Finance Company proposes to increase direct and indirect foreign investment upto 95%, without meeting the minimum capitalization norm of USD 50 million.
5 M/s Aerrianta International CPT, Ireland To set up a 50:50 JV company to engage in running duty free shops at Mumbai airport.
The following one (1) proposal has been recommended for the consideration of CCEA, as the investment involved in the proposal is above Rs. 1200 crore.
1 M/s Axis Bank Limited, Ahmedabad A private bank proposes to increase the foreign equity from the existing 49% to 62%. 6265.76
Sunday, October 20, 2013
IL&FS Engineering bags Rs 150-cr rural electrification project
Hyderabad: IL&FS Engineering and Construction Company Ltd has received a Letter of Award (LoA) from Paschimanchal Vidyut Vitran Nigam Ltd for execution of rural electrification works in Bulandshahr district of Uttar Pradesh.
The Rs 149.68-crore project is to be executed within 18 months on a turnkey basis. The project comes under the Government of India scheme of Rajeev Gandhi Grameen Vidyutikaran Yojana (RGGVY) Phase-II. The project is funded by Rural Electrification Corporation.
According to a statement, construction and infrastructure company IL&FS Engineering Services recently won a rural electrification project from Madhyanchal Vidyut Vitran Nigam Ltd in Uttar Pradesh.
The company is already executing rural electrification works for West Bengal State Electricity Distribution Company Ltd and for Power Grid Corporation of India Ltd in Orissa.
The Rs 149.68-crore project is to be executed within 18 months on a turnkey basis. The project comes under the Government of India scheme of Rajeev Gandhi Grameen Vidyutikaran Yojana (RGGVY) Phase-II. The project is funded by Rural Electrification Corporation.
According to a statement, construction and infrastructure company IL&FS Engineering Services recently won a rural electrification project from Madhyanchal Vidyut Vitran Nigam Ltd in Uttar Pradesh.
The company is already executing rural electrification works for West Bengal State Electricity Distribution Company Ltd and for Power Grid Corporation of India Ltd in Orissa.
Samsung, Sony, Nokia most attractive brands in East, says survey
Kolkata: Samsung , Sony and Nokia have emerged as the most attractive brands in the eastern part of the country, according to a study by Trust Research Advisory (TRA).
These brands have also been found to be top three most attractive in the country, India’s Most Attractive Brands 2013, noted.
According to Sachin Bhosle, Research Head, TRA, a brand insight company, the “report will be released annually, beginning this year.”
While ITC emerged as the 13th most attractive brand in Kolkata and 17th in East; Tata, Lux, Hero MotoCorp, Bata, Godrej, Philips, Britannia, Airtel, and Vodafone were among the top 20 attractive brands in the region.
Meanwhile, asked if Aditya Birla Group-owned brands would be impacted with Group Chairman Kumar Mangalam Birla’s name being dragged into the coal block allocation scam, Bhosle said: “I don’t actually think so because there are several brands which carry residual trust with them. I don’t see that it will impact the attractiveness quotients of the brands under the group immediately.”
He added: “There are several things that determine trust in a particular brand” and it should not be hurt due to “any such situation”.
These brands have also been found to be top three most attractive in the country, India’s Most Attractive Brands 2013, noted.
According to Sachin Bhosle, Research Head, TRA, a brand insight company, the “report will be released annually, beginning this year.”
While ITC emerged as the 13th most attractive brand in Kolkata and 17th in East; Tata, Lux, Hero MotoCorp, Bata, Godrej, Philips, Britannia, Airtel, and Vodafone were among the top 20 attractive brands in the region.
Meanwhile, asked if Aditya Birla Group-owned brands would be impacted with Group Chairman Kumar Mangalam Birla’s name being dragged into the coal block allocation scam, Bhosle said: “I don’t actually think so because there are several brands which carry residual trust with them. I don’t see that it will impact the attractiveness quotients of the brands under the group immediately.”
He added: “There are several things that determine trust in a particular brand” and it should not be hurt due to “any such situation”.
Healthcare Technology Innovation Centre, National Instruments to develop high-impact medical devices
Chennai: Healthcare Technology Innovation Centre (HTIC), a research and development centre established through a joint initiative of IIT, Madras and the department of biotechnology, will partner with National Instruments (NI), a US company that produces automated test equipment and virtual instrumentation software, to develop affordable and high-impact medical devices.
HTIC director Mohanasankar S signed a memorandum of understanding with Jayaram Pillai, managing director of National Instruments, India, Russia and Arabia, for the collaboration. The collaboration will extend to fields like patient monitoring, cardiovascular screening, surgical oncology and neonatal care.
NI will fund and provide software and hardware. Mohanasankar said, "NI's design and development platforms will allow us to shorten the time from idea to prototype, and quickly move the device for field testing and validation, which is crucial in med-tech R&D."
Jayaram Pillai of NI said, "We will support HTIC's initiatives with NI's graphical system design platform for product development and large scale deployment of affordable healthcare devices for emerging countries."
HTIC director Mohanasankar S signed a memorandum of understanding with Jayaram Pillai, managing director of National Instruments, India, Russia and Arabia, for the collaboration. The collaboration will extend to fields like patient monitoring, cardiovascular screening, surgical oncology and neonatal care.
NI will fund and provide software and hardware. Mohanasankar said, "NI's design and development platforms will allow us to shorten the time from idea to prototype, and quickly move the device for field testing and validation, which is crucial in med-tech R&D."
Jayaram Pillai of NI said, "We will support HTIC's initiatives with NI's graphical system design platform for product development and large scale deployment of affordable healthcare devices for emerging countries."
Govt allows Chinese power gear firms to set up service centres
New Delhi: The Cabinet on Thursday has cleared a proposal to sign a memorandum of understanding (MoU) with China that allows Chinese power equipment manufacturers to set up service centres in India.
Chinese equipment gained popularity because of low costs and cheap financing. Companies such as Reliance Power, Jindal Steel and Power, Haryana Power Generation Corporation, and JSW use Chinese equipment in their plants. Indian power developers have purchased equipment for nearly 61,000 MW from Chinese companies.
During the 11 {+t} {+h} Five-Year Plan (2007-12), equipment for 18,000 MW were already sourced from Chinese suppliers, while another 43,000 MW are under various stages of commissioning during the 12 {+t} {+h} Plan (2012-17) with equipment from China.
“There have been cases where power plants were shut for months due to lack of service network in the country. There have been instances where equipment had to be sent to China for repair and power plants shut for 10 months,” a Power Ministry official said.
Though, currently the law does not restrict foreign equipment providers from setting up a manufacturing and service base here, not many have used this opportunity, as guidelines were not in place.
“The Power Ministry and China’s National Energy Administration are likely to sign a memorandum of understanding (MOU) soon to facilitate setting up Power Equipment Service Centres (PESCs) in the country,” a senior Government official told Business Line.
The MoU could be signed during Prime Minister Manmohan Singh’s visit to China starting October 22.
In September, India and China held talks to improve business ties between the countries. During the meet, India spoke about the need for service maintenance backup for Chinese equipment installed here.
The MoU will only define general ways of co-operation between the parties to establish PESCs. “These will be set up on commercial terms. At the same time, costs and terms of servicing power equipment will be decided by the service centres and the users,” he said while adding that the pact will be valid for five years.
However, setting up a service centre in India would not qualify Chinese companies to supply equipment to the ultra mega power projects (UMPPs).
In August, an Empowered Group of Ministers (eGoM) headed by Defence Minister A. K. Antony decided that those bidding for UMPPs will have to source equipment from domestic manufacturers. This move is bound to help companies such as BHEL, L&T and Bharat Forge-Alstom, as all of them are suffering from lack of fresh orders.
Chinese equipment gained popularity because of low costs and cheap financing. Companies such as Reliance Power, Jindal Steel and Power, Haryana Power Generation Corporation, and JSW use Chinese equipment in their plants. Indian power developers have purchased equipment for nearly 61,000 MW from Chinese companies.
During the 11 {+t} {+h} Five-Year Plan (2007-12), equipment for 18,000 MW were already sourced from Chinese suppliers, while another 43,000 MW are under various stages of commissioning during the 12 {+t} {+h} Plan (2012-17) with equipment from China.
“There have been cases where power plants were shut for months due to lack of service network in the country. There have been instances where equipment had to be sent to China for repair and power plants shut for 10 months,” a Power Ministry official said.
Though, currently the law does not restrict foreign equipment providers from setting up a manufacturing and service base here, not many have used this opportunity, as guidelines were not in place.
“The Power Ministry and China’s National Energy Administration are likely to sign a memorandum of understanding (MOU) soon to facilitate setting up Power Equipment Service Centres (PESCs) in the country,” a senior Government official told Business Line.
The MoU could be signed during Prime Minister Manmohan Singh’s visit to China starting October 22.
In September, India and China held talks to improve business ties between the countries. During the meet, India spoke about the need for service maintenance backup for Chinese equipment installed here.
The MoU will only define general ways of co-operation between the parties to establish PESCs. “These will be set up on commercial terms. At the same time, costs and terms of servicing power equipment will be decided by the service centres and the users,” he said while adding that the pact will be valid for five years.
However, setting up a service centre in India would not qualify Chinese companies to supply equipment to the ultra mega power projects (UMPPs).
In August, an Empowered Group of Ministers (eGoM) headed by Defence Minister A. K. Antony decided that those bidding for UMPPs will have to source equipment from domestic manufacturers. This move is bound to help companies such as BHEL, L&T and Bharat Forge-Alstom, as all of them are suffering from lack of fresh orders.
Hungary and India Sign Agreement for Promotion of Traditional Medicines
New Delhi: In an important initiative taken by India, Republic of Hungary has signed a bilateral agreement with India for promotion and development of traditional systems of medicine. The Memorandum of Understanding was signed on behalf of India by Smt. Santosh Chowdhary, Union Minister of State for Health & Family Welfare and Mr. Zolton Banog, Minister of National Resources of Hungary in the presence of Dr. Manmohan Singh, Prime Minister of India and Mr. Viktor Orban, Prime Minister of Hungary, at Hyderabad House, here today.The Republic of Hungary has considerable interest in Indian traditional systems of medicine especially Ayurveda.
The main objective of this MoU is to strengthen, promote and develop cooperation in the field of traditional systems of medicine between the two countries on the basis of equality and mutual benefits. The MoU encourages and promotes cooperation to enhance the use of traditional systems of medicine, exchange of regulatory information on operational licensing to practice traditional medicine and on marketing authorization of medicines in both countries, promote the exchange of experts for training of practitioners, para-medics, scientists, teaching professionals and students in traditional systems of medicine. The signing of MoU will give boost to bilateral cooperation between the two countries in the areas of traditional medicines which will open new vistas for exploring the potential of economic, commercial and tourism development in both the countries.
Smt. Santosh Chowdhary has expressed hope that signing of such bilateral agreements, India will be able to establish the Indian systems of medicines namely Ayurveda, Unani, Yoga and Naturopathy, Siddha, Homeophathy and Sowa-Rigpa (Namchi) that will help in establishing the global recognition of India’s well established systems in the world over. It may be mentioned that India has already signed such agreements with Malaysia and Trininad and Tobago and is in the process of signing agreements with Russia, Nepal, Srilanka, Serbia and Mexico in near future.
The main objective of this MoU is to strengthen, promote and develop cooperation in the field of traditional systems of medicine between the two countries on the basis of equality and mutual benefits. The MoU encourages and promotes cooperation to enhance the use of traditional systems of medicine, exchange of regulatory information on operational licensing to practice traditional medicine and on marketing authorization of medicines in both countries, promote the exchange of experts for training of practitioners, para-medics, scientists, teaching professionals and students in traditional systems of medicine. The signing of MoU will give boost to bilateral cooperation between the two countries in the areas of traditional medicines which will open new vistas for exploring the potential of economic, commercial and tourism development in both the countries.
Smt. Santosh Chowdhary has expressed hope that signing of such bilateral agreements, India will be able to establish the Indian systems of medicines namely Ayurveda, Unani, Yoga and Naturopathy, Siddha, Homeophathy and Sowa-Rigpa (Namchi) that will help in establishing the global recognition of India’s well established systems in the world over. It may be mentioned that India has already signed such agreements with Malaysia and Trininad and Tobago and is in the process of signing agreements with Russia, Nepal, Srilanka, Serbia and Mexico in near future.
Zydus Cadila, Pieris join hands for drug development
Ahmedabad: Pharmaceutical firm Zydus Cadila and Germany-based Pieris AG on Wednesday announced an alliance for development and commercialisation of multiple novel Anticalin-based protein therapeutics.
The collaboration combines Pieris’ drug discovery and early development capabilities with Zydus’ expertise in biologics development, regulatory affairs and biologics manufacturing.
Under the terms of the agreement, Zydus will take the lead in advancing Anticalin drug candidates through formal pre-clinical development and into clinical development, undertaking drug development in accordance with the ICH guidelines.
Zydus has been granted exclusive marketing rights in India and several other emerging markets, while Pieris retains exclusive marketing rights in key developed markets, according to a press statement.
Pieris CEO, Stephen Yoder, said: “this collaboration will allow Pieris to unlock value on a global scale in a cost-effective manner, significantly expanding the number of proprietary Anticalin programmes we can advance into clinical trials.
The collaboration combines Pieris’ drug discovery and early development capabilities with Zydus’ expertise in biologics development, regulatory affairs and biologics manufacturing.
Under the terms of the agreement, Zydus will take the lead in advancing Anticalin drug candidates through formal pre-clinical development and into clinical development, undertaking drug development in accordance with the ICH guidelines.
Zydus has been granted exclusive marketing rights in India and several other emerging markets, while Pieris retains exclusive marketing rights in key developed markets, according to a press statement.
Pieris CEO, Stephen Yoder, said: “this collaboration will allow Pieris to unlock value on a global scale in a cost-effective manner, significantly expanding the number of proprietary Anticalin programmes we can advance into clinical trials.
Prism Cement first to get Italian quality certification
Mumbai: Prism Cement Ltd has become the first Indian company to get the Quality Council of India’s (QCI) certification for its ready-mix concrete (RMC) plant in Kochi, Kerala. The unit has a production capacity of 1.08 lakh cubic metres a year.
The company received the certification from ICQM (Institute for Certification and Quality Mark) , a leading Italian certification body authorised to oversee QCI compliance.
The QCI audit for ready-mix concrete was launched in May in consultation with the Central Public Works Department, the Building Materials and Technology Promotion Council, the Ministry of Housing and Urban Poverty Alleviation and the Ready-Mixed Concrete Manufacturers’ Association.
Venugopal Panicker, Executive Director (RMC Readymix division), told Business Line the QCI scheme was an independent third-party audit that would instil confidence on the quality of RMC being used by customers.
“We are now preparing to implement the scheme at all our 88 plants across the country. The audit is made in every six months to ensure the quality process is embedded in the system.”
The QCI audit includes a check on plant and machinery, testing facilities, the control mechanism , the properties of concrete ingredients and technical skill sets of the manpower at the units, besides a test on the final product quality.
Prism’s RMC production capacity stands at 70 lakh cubic metres per annum. While globally 70 per cent of the cement produced is sold in the form of RMC, it is just 10 per cent in India.
Moving away from the general mix of cement, sand and water, companies have adopted various technological innovations to enhance the quality of RMC to cater to the needs of construction companies. Right from lightweight concrete to coloured concrete to temperature control concrete, companies have used chemicals to alter the nature of concrete.
Though established cement companies such as ACC, Ambuja Cements, UltraTech Cement and Prism Cement have all-India presence, nearly 60 per cent of the RMC market is controlled by unorganised players.
Unlike ISI mark on steel bars, it is not mandatory for RMC units to comply with any quality certification.
The company received the certification from ICQM (Institute for Certification and Quality Mark) , a leading Italian certification body authorised to oversee QCI compliance.
The QCI audit for ready-mix concrete was launched in May in consultation with the Central Public Works Department, the Building Materials and Technology Promotion Council, the Ministry of Housing and Urban Poverty Alleviation and the Ready-Mixed Concrete Manufacturers’ Association.
Venugopal Panicker, Executive Director (RMC Readymix division), told Business Line the QCI scheme was an independent third-party audit that would instil confidence on the quality of RMC being used by customers.
“We are now preparing to implement the scheme at all our 88 plants across the country. The audit is made in every six months to ensure the quality process is embedded in the system.”
The QCI audit includes a check on plant and machinery, testing facilities, the control mechanism , the properties of concrete ingredients and technical skill sets of the manpower at the units, besides a test on the final product quality.
Prism’s RMC production capacity stands at 70 lakh cubic metres per annum. While globally 70 per cent of the cement produced is sold in the form of RMC, it is just 10 per cent in India.
Moving away from the general mix of cement, sand and water, companies have adopted various technological innovations to enhance the quality of RMC to cater to the needs of construction companies. Right from lightweight concrete to coloured concrete to temperature control concrete, companies have used chemicals to alter the nature of concrete.
Though established cement companies such as ACC, Ambuja Cements, UltraTech Cement and Prism Cement have all-India presence, nearly 60 per cent of the RMC market is controlled by unorganised players.
Unlike ISI mark on steel bars, it is not mandatory for RMC units to comply with any quality certification.
Gamesa India signs order for 54 MW wind power project in Andhra Pradesh
Chennai: Wind Power company Gamesa Wind Turbines has won an order to set up a 54 MW wind power project for a power & utility development company in Andhra Pradesh.
Under this contract Gamesa would be supplying 27 units of 2 MW turbines at Tagguparthi, Andhra Pradesh. The commissioning is scheduled to be completed by May 2014. Gamesa would be responsible for site development, supply & commissioning of the turbines. The agreement also includes a comprehensive Operations & Maintenance (O&M) agreement for 10 years, a statement from the company said.
"With the GBI (generation based incentives scheme) now in place, we look forward to a very promising future," said Ramesh Kymal, Chairman and Managing Director of Gamesa India.
Gamesa is also working on setting up a 46 MW wind power project in the same district of Tagguparthi, Andhra Pradesh for ITC Paperboards and Specialty Papers Division.
The orders come at a time when the wind power market in India is tepid with capacity additions last year falling to 1700MW compared with 3200MW in 2011.Capacity additions, however, are expected to pick up over the next few months after the central government recently reinstated the GBI scheme where companies will be paid an incentive of 50paise for every unit of wind power they generate.
Gamesa India has so far installed more than 900 MW along with managing the operation and maintenance services on these turbines. It also has on hand orders for about 1000 MW, about 600 MW of which will be commissioned this year and the rest carried forward for next year. The company also manages capacity of more than 800 MW under O&M agreements.
Under this contract Gamesa would be supplying 27 units of 2 MW turbines at Tagguparthi, Andhra Pradesh. The commissioning is scheduled to be completed by May 2014. Gamesa would be responsible for site development, supply & commissioning of the turbines. The agreement also includes a comprehensive Operations & Maintenance (O&M) agreement for 10 years, a statement from the company said.
"With the GBI (generation based incentives scheme) now in place, we look forward to a very promising future," said Ramesh Kymal, Chairman and Managing Director of Gamesa India.
Gamesa is also working on setting up a 46 MW wind power project in the same district of Tagguparthi, Andhra Pradesh for ITC Paperboards and Specialty Papers Division.
The orders come at a time when the wind power market in India is tepid with capacity additions last year falling to 1700MW compared with 3200MW in 2011.Capacity additions, however, are expected to pick up over the next few months after the central government recently reinstated the GBI scheme where companies will be paid an incentive of 50paise for every unit of wind power they generate.
Gamesa India has so far installed more than 900 MW along with managing the operation and maintenance services on these turbines. It also has on hand orders for about 1000 MW, about 600 MW of which will be commissioned this year and the rest carried forward for next year. The company also manages capacity of more than 800 MW under O&M agreements.
Germany eyes skilled talent from India
Pune: Germany is looking to attract skilled talent from India. In the near future, the country would face a dearth of skilled human resources, especially in manufacturing and engineering sectors, its core strength.
The reason? In the next few years, half the German population would be aged more than 60.
Speaking to Business Standard, Michael Siebert, consul general of the German Consulate in Mumbai, said, “Due to demographic issues, half the German population would be aged more than 60. We need at least 40,000 skilled employees for various sectors, especially engineering. India has a lot of job opportunities in Germany. It has a lot of quality young people who would have a lot of opportunities, not only in manufacturing and automobiles, but also in service sectors such as finance, insurance, information technology, entertainment, publication and emerging sectors such as hospitality.”
Initially, German companies are eying local talent for their Indian subsidiaries. They plan to relocate the hired lot to Germany for a few years, in due course of time. The companies also have a similar policy for markets such as Poland and Brazil. A few German universities are attracting Indian students for research-based or doctoral studies. However, Germany does want to turn itself into an education market like the UK or Australia. This is because it seeks to enroll only quality students.
Germany is organising job fairs in India under the programme ‘Trained in GermanY’. In this, it is aided by the Indo-German Chamber of Commerce, Pune, and Alumniportal Deutschland, the German ministry for economic cooperation and development and the federal foreign office.
Siebert said research departments in Germany were affected by the shortage of skilled employees. Also, in the BRICS (Brazil, Russia, India, China and South Africa) countries, there was increasing demand and competition for young and educated people. German companies located in BRICS nations valued local employees who had studied or been trained in Germany, particularly because they were familiar with the German economy, culture and language, he said.
Currently, trade between India and Germany stands at euro 18 billion. Also, there is a lot of technology and knowledge transfer between the two countries. So far, German companies have invested euro 3 billion in India and provided employment to about 5,00,000 Indian nationals.
Zubin Kabraji, regional director, Indo-German Chamber of Commerce, Pune, said about 300 German companies had set up businesses in Pune. The total investment by these companies here stood at about euro 1 billion. The city also accounts for about 175 joint ventures between Indian and German entities. Most investments are in the manufacturing and automobile sectors.
Alumniportal Deutschland is an online community for people who have studied, conducted research, worked or received training in Germany or at a German institute abroad. On this portal, members can create and maintain professional profiles, take part in discussions and apply for job vacancies. Organisations and companies can create and maintain their profiles, put up job vacancies and scout for candidates for vacancies.
The reason? In the next few years, half the German population would be aged more than 60.
Speaking to Business Standard, Michael Siebert, consul general of the German Consulate in Mumbai, said, “Due to demographic issues, half the German population would be aged more than 60. We need at least 40,000 skilled employees for various sectors, especially engineering. India has a lot of job opportunities in Germany. It has a lot of quality young people who would have a lot of opportunities, not only in manufacturing and automobiles, but also in service sectors such as finance, insurance, information technology, entertainment, publication and emerging sectors such as hospitality.”
Initially, German companies are eying local talent for their Indian subsidiaries. They plan to relocate the hired lot to Germany for a few years, in due course of time. The companies also have a similar policy for markets such as Poland and Brazil. A few German universities are attracting Indian students for research-based or doctoral studies. However, Germany does want to turn itself into an education market like the UK or Australia. This is because it seeks to enroll only quality students.
Germany is organising job fairs in India under the programme ‘Trained in GermanY’. In this, it is aided by the Indo-German Chamber of Commerce, Pune, and Alumniportal Deutschland, the German ministry for economic cooperation and development and the federal foreign office.
Siebert said research departments in Germany were affected by the shortage of skilled employees. Also, in the BRICS (Brazil, Russia, India, China and South Africa) countries, there was increasing demand and competition for young and educated people. German companies located in BRICS nations valued local employees who had studied or been trained in Germany, particularly because they were familiar with the German economy, culture and language, he said.
Currently, trade between India and Germany stands at euro 18 billion. Also, there is a lot of technology and knowledge transfer between the two countries. So far, German companies have invested euro 3 billion in India and provided employment to about 5,00,000 Indian nationals.
Zubin Kabraji, regional director, Indo-German Chamber of Commerce, Pune, said about 300 German companies had set up businesses in Pune. The total investment by these companies here stood at about euro 1 billion. The city also accounts for about 175 joint ventures between Indian and German entities. Most investments are in the manufacturing and automobile sectors.
Alumniportal Deutschland is an online community for people who have studied, conducted research, worked or received training in Germany or at a German institute abroad. On this portal, members can create and maintain professional profiles, take part in discussions and apply for job vacancies. Organisations and companies can create and maintain their profiles, put up job vacancies and scout for candidates for vacancies.
Centre eases eligibility criteria for UMPPs
New Delhi: Power sector investors have raised queries ranging from eligibility criteria to availability of clearances for two coming ultra-mega power projects (UMPPs) in the first pre-application conference held here on Tuesday.
Assuaging the concerns, the power ministry informed the corporates of the relaxation granted in the new bidding norms. “The total capital cost requirement, in order to qualify for setting up the plant, has been brought down to five per cent. Also, keeping the economic slowdown in mind, the expenditure incurred by the companies on projects in the past seven years will be counted,” said a senior power ministry official on the sidelines of the conference, organised by Power Finance Corporation (PFC), the nodal agency that conducts bidding for UMPPs.
PFC has issued requests for qualification for Odisha and Tamil Nadu UMPPs, whose financial bids will be opened in December. The projects would be awarded in February next year.
Earlier, the capital cost requirement for UMPPs used to be 10 per cent of the overall project cost. Also, the earlier norms took into account expenditure by prospective developers over five years.
PFC told the investors that in the new UMPPs, fuel risk is not with the developer and coal supply is assured in the Odisha project.
Apart from corporate heads, Tuesday’s meeting was attended by engineering, procurement and construction (EPC) contractors, equipment manufacturers, financial institutions and consultants.
PFC told the investors that in the new UMPPs, fuel risk is not with the developer and coal supply is assured in the Odisha project. Also, land and water clearances are already in place for both the UMPPs. In addition, the investors sought details of norms on eligibility for qualification and sourcing of equipment from indigenous manufacturers.
Assuaging the concerns, the power ministry informed the corporates of the relaxation granted in the new bidding norms. “The total capital cost requirement, in order to qualify for setting up the plant, has been brought down to five per cent. Also, keeping the economic slowdown in mind, the expenditure incurred by the companies on projects in the past seven years will be counted,” said a senior power ministry official on the sidelines of the conference, organised by Power Finance Corporation (PFC), the nodal agency that conducts bidding for UMPPs.
PFC has issued requests for qualification for Odisha and Tamil Nadu UMPPs, whose financial bids will be opened in December. The projects would be awarded in February next year.
Earlier, the capital cost requirement for UMPPs used to be 10 per cent of the overall project cost. Also, the earlier norms took into account expenditure by prospective developers over five years.
PFC told the investors that in the new UMPPs, fuel risk is not with the developer and coal supply is assured in the Odisha project.
Apart from corporate heads, Tuesday’s meeting was attended by engineering, procurement and construction (EPC) contractors, equipment manufacturers, financial institutions and consultants.
PFC told the investors that in the new UMPPs, fuel risk is not with the developer and coal supply is assured in the Odisha project. Also, land and water clearances are already in place for both the UMPPs. In addition, the investors sought details of norms on eligibility for qualification and sourcing of equipment from indigenous manufacturers.
Wednesday, October 16, 2013
Reliance Jio Infocomm to offer fixedline & wireless network services
Mumbai: Reliance Industries-owned Reliance Jio Infocomm will offer fixed and wireless broadband Internet connections when it launches services, the parent said in its quarterly earnings release on Monday.
The objective of offering fixed-line services comes with additional capital expenditure to connect locations with cables.
A person familiar with developments said the company has obtained local authority permissions to lay nearly 100 kilometres of optic fibre cables every day in Mumbai and Delhi. The company did not confirm this.
The release did say that Reliance Jio has been rapidly increasing staffing.
Its employee base over the last year has risen to 4,000 from 700. "The key leadership positions required to execute the project are in place," the company said. "RJIL has finalised the key vendor and supplier partnerships that are required for the launch of our services, and is making rapid progress in building the critical infrastructure needed to launch its services." Reliance Jio is the only company to have high-speed wireless broadband spectrum across the country.
The airwaves were bought for around Rs 13,000 crore in May 2010, at a significant discount to 3G acquired by operators such as Bharti AirtelBSE 1.17 %, Vodafone and Idea Cellular.
Earlier this year, the company entered into two deals with Anil Ambani-run Reliance CommunicationsBSE -0.56 % to lease national optic fibre connectivity and 45,000 towers.
The objective of offering fixed-line services comes with additional capital expenditure to connect locations with cables.
A person familiar with developments said the company has obtained local authority permissions to lay nearly 100 kilometres of optic fibre cables every day in Mumbai and Delhi. The company did not confirm this.
The release did say that Reliance Jio has been rapidly increasing staffing.
Its employee base over the last year has risen to 4,000 from 700. "The key leadership positions required to execute the project are in place," the company said. "RJIL has finalised the key vendor and supplier partnerships that are required for the launch of our services, and is making rapid progress in building the critical infrastructure needed to launch its services." Reliance Jio is the only company to have high-speed wireless broadband spectrum across the country.
The airwaves were bought for around Rs 13,000 crore in May 2010, at a significant discount to 3G acquired by operators such as Bharti AirtelBSE 1.17 %, Vodafone and Idea Cellular.
Earlier this year, the company entered into two deals with Anil Ambani-run Reliance CommunicationsBSE -0.56 % to lease national optic fibre connectivity and 45,000 towers.
14 projects cleared under coconut technology mission
Kochi: The Technology Mission on Coconut (TMOC) has cleared 14 projects at an outlay of Rs 19.25 crore and a subsidy of Rs 2.86 crore.
A decision in this regard was taken at the 41 {+s} {+t} meeting of the Project Approval Committee (PAC) on TMOC under the chairmanship of T.K. Jose, Chairman, Coconut Development Board.
Under the project component “Processing and Product Diversification”, proposals from 10 coconut processing units have been cleared. This includes setting up of five desiccated coconut powder manufacturing units, two tender coconut water units, one coconut shell charcoal unit, one coconut shell powder unit and one ball copra unit.
Three research projects are also among the approved projects. One unit has been approved for market promotional activities of coconut kernel products on reimbursement basis.
In Kerala, one unit has been given permission for producing desiccated coconut powder with a capacity to process 15,000 nuts a day.
In Karnataka, four units of desiccated coconut powder with a capacity to process 2,40,000 nuts a day and one TCW processing unit with a capacity to process 30,000 tender coconut a day have been approved.
In Tamil Nadu, one unit has been cleared for packing tender coconut water with a capacity to process 60,000 packets a day. Another unit has been allowed to produce coconut shell powder with a capacity to process 6.6 tonnes /day , while one coconut shell charcoal unit has been cleared with a capacity to process 3.24 tonnes/day.
In Andhra Pradesh, the panel sanctioned one ball copra unit with a capacity to process 60,0000 nuts/year
A decision in this regard was taken at the 41 {+s} {+t} meeting of the Project Approval Committee (PAC) on TMOC under the chairmanship of T.K. Jose, Chairman, Coconut Development Board.
Under the project component “Processing and Product Diversification”, proposals from 10 coconut processing units have been cleared. This includes setting up of five desiccated coconut powder manufacturing units, two tender coconut water units, one coconut shell charcoal unit, one coconut shell powder unit and one ball copra unit.
Three research projects are also among the approved projects. One unit has been approved for market promotional activities of coconut kernel products on reimbursement basis.
In Kerala, one unit has been given permission for producing desiccated coconut powder with a capacity to process 15,000 nuts a day.
In Karnataka, four units of desiccated coconut powder with a capacity to process 2,40,000 nuts a day and one TCW processing unit with a capacity to process 30,000 tender coconut a day have been approved.
In Tamil Nadu, one unit has been cleared for packing tender coconut water with a capacity to process 60,000 packets a day. Another unit has been allowed to produce coconut shell powder with a capacity to process 6.6 tonnes /day , while one coconut shell charcoal unit has been cleared with a capacity to process 3.24 tonnes/day.
In Andhra Pradesh, the panel sanctioned one ball copra unit with a capacity to process 60,0000 nuts/year
14 projects cleared under coconut technology mission
Kochi: The Technology Mission on Coconut (TMOC) has cleared 14 projects at an outlay of Rs 19.25 crore and a subsidy of Rs 2.86 crore.
A decision in this regard was taken at the 41 {+s} {+t} meeting of the Project Approval Committee (PAC) on TMOC under the chairmanship of T.K. Jose, Chairman, Coconut Development Board.
Under the project component “Processing and Product Diversification”, proposals from 10 coconut processing units have been cleared. This includes setting up of five desiccated coconut powder manufacturing units, two tender coconut water units, one coconut shell charcoal unit, one coconut shell powder unit and one ball copra unit.
Three research projects are also among the approved projects. One unit has been approved for market promotional activities of coconut kernel products on reimbursement basis.
In Kerala, one unit has been given permission for producing desiccated coconut powder with a capacity to process 15,000 nuts a day.
In Karnataka, four units of desiccated coconut powder with a capacity to process 2,40,000 nuts a day and one TCW processing unit with a capacity to process 30,000 tender coconut a day have been approved.
In Tamil Nadu, one unit has been cleared for packing tender coconut water with a capacity to process 60,000 packets a day. Another unit has been allowed to produce coconut shell powder with a capacity to process 6.6 tonnes /day , while one coconut shell charcoal unit has been cleared with a capacity to process 3.24 tonnes/day.
In Andhra Pradesh, the panel sanctioned one ball copra unit with a capacity to process 60,0000 nuts/year
A decision in this regard was taken at the 41 {+s} {+t} meeting of the Project Approval Committee (PAC) on TMOC under the chairmanship of T.K. Jose, Chairman, Coconut Development Board.
Under the project component “Processing and Product Diversification”, proposals from 10 coconut processing units have been cleared. This includes setting up of five desiccated coconut powder manufacturing units, two tender coconut water units, one coconut shell charcoal unit, one coconut shell powder unit and one ball copra unit.
Three research projects are also among the approved projects. One unit has been approved for market promotional activities of coconut kernel products on reimbursement basis.
In Kerala, one unit has been given permission for producing desiccated coconut powder with a capacity to process 15,000 nuts a day.
In Karnataka, four units of desiccated coconut powder with a capacity to process 2,40,000 nuts a day and one TCW processing unit with a capacity to process 30,000 tender coconut a day have been approved.
In Tamil Nadu, one unit has been cleared for packing tender coconut water with a capacity to process 60,000 packets a day. Another unit has been allowed to produce coconut shell powder with a capacity to process 6.6 tonnes /day , while one coconut shell charcoal unit has been cleared with a capacity to process 3.24 tonnes/day.
In Andhra Pradesh, the panel sanctioned one ball copra unit with a capacity to process 60,0000 nuts/year
ONGC’s foreign arm to acquire 12% stake in Brazil block
Mumbai: ONGC Videsh Ltd (OVL), the foreign exploration arm of Oil and Natural Gas Corporation (ONGC), has signed definitive agreements to acquire an additional 12 per cent participating interest in block BC-10 in Brazil. This would increase OVL’s share in the acreage to 27 per cent.
In 2006, OVL had acquired 15 per cent interest in the offshore block in the Campos Basin of Brazil.
The deal is part of the sale of 35 per cent share made by Petrobras which, this August, entered into a deal with Sinochem to sell its 35 per cent interest in the block for $1.543 billion.
The other partners in the block include Shell, which is the operator with 50 per cent stake.
In a press statement, OVL said the acquisition of additional share in the block is subject to approval by the Brazilian anti-trust and regulatory authorities and the agreement was subject to pre-emption rights of the partners Shell and OVL. On September 17, the two companies served a notice to jointly acquire 35 per cent, in which 12 per cent interest corresponds to OVL.
On October 11, in a follow-up to the pre-emption notice, OVL signed sale and purchase agreements with Petrobras for a 12 per cent interest which is likely to cost $529.03 million.
The Block BC-10, also known as Parque das Conchas, includes four offshore deep-water fields — Ostra, Abalone, Argonauta and Nautilus — and a few identified exploration prospects. The block is in the deep-waters of Brazil in the water depths ranging from 1,500 to 1,950 meters and 120 km from Vitoria town on the shore. The licence for the fields expires in December 2032.
In a separate development, OVL has been awarded two onshore blocks, namely B2 (Zebyutaung-Nandaw) and EP-3 (Thegon-Shwegu) in the Myanmar Onshore Bidding Round 2013. Block B-2, having an area of 16,995 sq km, is located in northern Myanmar, bordering Manipur, and the 1,650-sq km Block EP-3 is located in central Myanmar.
OVL has a decade-old presence in the exploration and production sector of Myanmar, with 17 per cent non-operating stakes in the fields Shwe & Shwe Phyu (Block –A1) and Mya North & Mya South (Block A3), with a total investment of $565 million as on September 30. Myanmar is one of the focus countries for OVL.
In 2006, OVL had acquired 15 per cent interest in the offshore block in the Campos Basin of Brazil.
The deal is part of the sale of 35 per cent share made by Petrobras which, this August, entered into a deal with Sinochem to sell its 35 per cent interest in the block for $1.543 billion.
The other partners in the block include Shell, which is the operator with 50 per cent stake.
In a press statement, OVL said the acquisition of additional share in the block is subject to approval by the Brazilian anti-trust and regulatory authorities and the agreement was subject to pre-emption rights of the partners Shell and OVL. On September 17, the two companies served a notice to jointly acquire 35 per cent, in which 12 per cent interest corresponds to OVL.
On October 11, in a follow-up to the pre-emption notice, OVL signed sale and purchase agreements with Petrobras for a 12 per cent interest which is likely to cost $529.03 million.
The Block BC-10, also known as Parque das Conchas, includes four offshore deep-water fields — Ostra, Abalone, Argonauta and Nautilus — and a few identified exploration prospects. The block is in the deep-waters of Brazil in the water depths ranging from 1,500 to 1,950 meters and 120 km from Vitoria town on the shore. The licence for the fields expires in December 2032.
In a separate development, OVL has been awarded two onshore blocks, namely B2 (Zebyutaung-Nandaw) and EP-3 (Thegon-Shwegu) in the Myanmar Onshore Bidding Round 2013. Block B-2, having an area of 16,995 sq km, is located in northern Myanmar, bordering Manipur, and the 1,650-sq km Block EP-3 is located in central Myanmar.
OVL has a decade-old presence in the exploration and production sector of Myanmar, with 17 per cent non-operating stakes in the fields Shwe & Shwe Phyu (Block –A1) and Mya North & Mya South (Block A3), with a total investment of $565 million as on September 30. Myanmar is one of the focus countries for OVL.
IIM-A moves up The Economist B-school ranking list
Ahmedabad: The Indian Institute of Management-Ahmedabad on Monday said it was ranked 39th globally in The Economist full-time MBA Programmes Ranking 2013.
It has moved up from the 56th position last year in the top 100-B Schools’ list globally, a press statement here said.
IIM-A is the only Indian B-school to figure in the top 100 list for the last four years.
The Institute has made it to the fourth position in the Asia and Australasia 2013 rankings.
It is also ranked No 1 on criteria such as student quality, opening new career opportunities, percentage increase on pre-MBA salary, and percentage of students in work three months after graduation.
It has moved up from the 56th position last year in the top 100-B Schools’ list globally, a press statement here said.
IIM-A is the only Indian B-school to figure in the top 100 list for the last four years.
The Institute has made it to the fourth position in the Asia and Australasia 2013 rankings.
It is also ranked No 1 on criteria such as student quality, opening new career opportunities, percentage increase on pre-MBA salary, and percentage of students in work three months after graduation.
IIM-A moves up The Economist B-school ranking list
Ahmedabad: The Indian Institute of Management-Ahmedabad on Monday said it was ranked 39th globally in The Economist full-time MBA Programmes Ranking 2013.
It has moved up from the 56th position last year in the top 100-B Schools’ list globally, a press statement here said.
IIM-A is the only Indian B-school to figure in the top 100 list for the last four years.
The Institute has made it to the fourth position in the Asia and Australasia 2013 rankings.
It is also ranked No 1 on criteria such as student quality, opening new career opportunities, percentage increase on pre-MBA salary, and percentage of students in work three months after graduation.
It has moved up from the 56th position last year in the top 100-B Schools’ list globally, a press statement here said.
IIM-A is the only Indian B-school to figure in the top 100 list for the last four years.
The Institute has made it to the fourth position in the Asia and Australasia 2013 rankings.
It is also ranked No 1 on criteria such as student quality, opening new career opportunities, percentage increase on pre-MBA salary, and percentage of students in work three months after graduation.
Government plans to set up 2 spice parks in Uttrakhand
New Delhi: The Government of India plans to set up two spice parks at Sitarganj and Sahaspur in Uttrakhand with the help of Spice Board of India, said Mr Anand Sharma, Union Minister for Commerce and Industry, Government of India.
The spice park coming up at Sitarganj would be a step towards boosting both production and quality of spices in the state. The Sitarganj spice park will initially help in production of ginger on a large scale and later move on to turmeric and chilly production, said Mr Sharma.
The Government also plans to build a convention centre at Pantnagar near Sitarganj, for which Rs 15 crore have already been sanctioned, added Mr Sharma.
The Centre has also cleared two horticulture processing projects in Uttarakhand, stated Mr Sharma. One horticulture centre is scheduled to come up at Yamuna Ghati and the other at Harshil in Uttarkashi district.
Moreover, in order to boost investment in Uttarakhand, Rs 50 crore have been separately sanctioned for developing industrial infrastructure in the state, highlighted Mr Sharma
The spice park coming up at Sitarganj would be a step towards boosting both production and quality of spices in the state. The Sitarganj spice park will initially help in production of ginger on a large scale and later move on to turmeric and chilly production, said Mr Sharma.
The Government also plans to build a convention centre at Pantnagar near Sitarganj, for which Rs 15 crore have already been sanctioned, added Mr Sharma.
The Centre has also cleared two horticulture processing projects in Uttarakhand, stated Mr Sharma. One horticulture centre is scheduled to come up at Yamuna Ghati and the other at Harshil in Uttarkashi district.
Moreover, in order to boost investment in Uttarakhand, Rs 50 crore have been separately sanctioned for developing industrial infrastructure in the state, highlighted Mr Sharma
Monday, October 14, 2013
Gujarat government plans exclusive zone for Japanese companies
Gandhinagar: The Gujarat government is planning a dedicated industrial zone for Japanese companies coming to the state. It has already earmarked the area for the project right next to Maruti Suzuki India Limited car plant near Hansalpur in Mandal taluka of Ahmedabad district.
Gujarat Industrial Development Corporation (GIDC), the nodal agency for the planned industrial development in the state, has initiated the process of developing the dedicated zone to facilitate setting up of medium and large size units.
Sources in the government informed, "Apart from ancillary units of Maruti Suzuki, a number of medium and large Japanese companies are keen to invest in Gujarat. GIDC plans to acquire around 500 hectares of land for the proposed zone on the model of Japan Industrial Zone developed by Rajasthan government in Neemrana in Alwar district. We are planning it on a bigger scale. We expect at least 25 companies to invest Rs 100 crore to Rs 500 crore each."
However, officials said that land acquisition in the area would be a major issue, especially after the recent Mandal-Bechraji SIR row. The GIDC plans to acquire only 150 hectares initially. "Thereafter we will gradually acquire more land. GIDC is also developing a dedicated auto industry estate in the region," sources added. The state government has given 670 acres at around Rs 643 per square metre to Maruti in Hansalpur. The company has sought additional 330 acres close to the plant site. Maruti had signed a state support agreement with the government for the purchase of land near Hansalpur to set up an all new manufacturing facility in June 2012. The plant is expected to be commissioned by 2015-16.
The company is planning to invest around Rs 4,000 crore for the unit with 1 million car annual capacity. Total direct or indirect employment generated is expected to be 1.5 lakh. The state government has given 'mega and innovative project' status to the venture.
Gujarat Industrial Development Corporation (GIDC), the nodal agency for the planned industrial development in the state, has initiated the process of developing the dedicated zone to facilitate setting up of medium and large size units.
Sources in the government informed, "Apart from ancillary units of Maruti Suzuki, a number of medium and large Japanese companies are keen to invest in Gujarat. GIDC plans to acquire around 500 hectares of land for the proposed zone on the model of Japan Industrial Zone developed by Rajasthan government in Neemrana in Alwar district. We are planning it on a bigger scale. We expect at least 25 companies to invest Rs 100 crore to Rs 500 crore each."
However, officials said that land acquisition in the area would be a major issue, especially after the recent Mandal-Bechraji SIR row. The GIDC plans to acquire only 150 hectares initially. "Thereafter we will gradually acquire more land. GIDC is also developing a dedicated auto industry estate in the region," sources added. The state government has given 670 acres at around Rs 643 per square metre to Maruti in Hansalpur. The company has sought additional 330 acres close to the plant site. Maruti had signed a state support agreement with the government for the purchase of land near Hansalpur to set up an all new manufacturing facility in June 2012. The plant is expected to be commissioned by 2015-16.
The company is planning to invest around Rs 4,000 crore for the unit with 1 million car annual capacity. Total direct or indirect employment generated is expected to be 1.5 lakh. The state government has given 'mega and innovative project' status to the venture.
Kozhikode Cyber Park eyes W. Asian markets
Kozhikode: The UL Cyber Park here, the first IT special economic zone (SEZ) in the cooperative sector in the country, will focus on big data, cloud computing and apps development, says its Chief Executive Officer P. Gopinath.
“We will go with the latest trends in the IT sector in order to meet the needs of the global market, especially the West Asian market,” Gopinath told Business Line in an interview. “The park has the potential to function as a back-office for the West Asian banking and financial industry.”
Rs 210-cr park
The Rs 210-crore first phase of the park, with a built-up office space of nearly half a million square feet, will open in December. Gopinath claimed that several top global IT brands had expressed intent to set up shop in the park.
Since the global IT industry is not in the pink of health at the moment, will it not impact the prospects of Cyber Park? “Our becoming operational will coincide with the anticipated bounce-back of the US economy from its slowdown,” Gopinath said. The US recovery would boost the IT industry.
When the park, promoted by Uralunkal Labour Contract Cooperative Society Ltd, becomes fully operational it will have 2.7 million square feet of office space.
Located on a hillside surrounded by greenery just outside the Kozhikode city, the park is strategically placed in terms of road, rail and air connectivities. Bangalore is 350 km away, and Kochi — home to SmartCity and Infopark — is 200 km away.
“Cyber Park will be the IT hub of the North Kerala region which has a lot of IT talent and companies spread all over,” Gopinath said. “We can have linkages with the IT facilities at Bangalore, Kochi, Thiruvananthapuram and Coimbatore.”
The Indian Institute of Management, Kozhikode; the National Institute of Technology; University of Calicut and University of Kannur are expected to supply managerial and technical manpower. Many IT firms as well as professionals, currently operating in Bangalore, were expected to relocate to the cyber park.
Sez status
The SEZ status, which reduces the tax burden of the companies substantially, will be an attraction for IT firms to the park. “We have a recipe for success in terms of strategic location, access, talent pool and the SEZ status.”
“We will go with the latest trends in the IT sector in order to meet the needs of the global market, especially the West Asian market,” Gopinath told Business Line in an interview. “The park has the potential to function as a back-office for the West Asian banking and financial industry.”
Rs 210-cr park
The Rs 210-crore first phase of the park, with a built-up office space of nearly half a million square feet, will open in December. Gopinath claimed that several top global IT brands had expressed intent to set up shop in the park.
Since the global IT industry is not in the pink of health at the moment, will it not impact the prospects of Cyber Park? “Our becoming operational will coincide with the anticipated bounce-back of the US economy from its slowdown,” Gopinath said. The US recovery would boost the IT industry.
When the park, promoted by Uralunkal Labour Contract Cooperative Society Ltd, becomes fully operational it will have 2.7 million square feet of office space.
Located on a hillside surrounded by greenery just outside the Kozhikode city, the park is strategically placed in terms of road, rail and air connectivities. Bangalore is 350 km away, and Kochi — home to SmartCity and Infopark — is 200 km away.
“Cyber Park will be the IT hub of the North Kerala region which has a lot of IT talent and companies spread all over,” Gopinath said. “We can have linkages with the IT facilities at Bangalore, Kochi, Thiruvananthapuram and Coimbatore.”
The Indian Institute of Management, Kozhikode; the National Institute of Technology; University of Calicut and University of Kannur are expected to supply managerial and technical manpower. Many IT firms as well as professionals, currently operating in Bangalore, were expected to relocate to the cyber park.
Sez status
The SEZ status, which reduces the tax burden of the companies substantially, will be an attraction for IT firms to the park. “We have a recipe for success in terms of strategic location, access, talent pool and the SEZ status.”
Coal India registers 9.6 percent growth in coal production
New Delhi: Coal India Ltd. has registered significant improvement in coal production, dispatch and supplies to the power sector which has resulted increase in coal based power generation. In the quarter ending September, 2013, coal production has shown a growth of 9.6%, coal dispatch 7.2% and coal supplies to power sector 7% over the second quarter of last financial year. This has led to a growth of 7% in coal based power generation. This was stated by was stated by Union Minister of Coal, Shri Sriprakash Jaisawal while addressing the inaugural session of “Clean Coal India 2013” being organized by the Confederation of Indian Industries hear today. He said for sustainable growth rate of 8%, country need to increase the primary energy supply by three times and electricity generation by five times by 2031-32. The energy demand keeps on increasing due to rising population, accelerated industrialization and urbanization.
Text of the Minister’s speech is as follows:
“Energy security and environmental considerations are the two big challenges the world is facing today. India is not exceptional to these challenges but the difference is that our developmental goals are more pressing compared to the global environmental considerations and the fact that our dependence on coal in meeting our energy requirements would continue in near future also makes it further challenging.
For sustainable growth rate of 8%, we need to increase the primary energy supply by three times and electricity generation by five times by 2031-32. The energy demand keeps on increasing due to rising population, accelerated industrialization and urbanization.
I am pleased to inform that performance of Coal India Ltd. in terms of coal production, coal dispatch and also coal supplies to the power sector has been very good during the month of September, 2013 as well as during the Second Quarter of the current financial year. In September, 2013 coal production has increased by 15.6%, off-take by 9.2% and coal supply to power sector by 9% as compared to September, 2012.
In the quarter ending September, 2013, coal production has shown a growth of 9.6%, coal dispatch 7.2% and coal supplies to power sector 7% over the second quarter of last financial year. This has led to a growth of 7% in coal based power generation.
In our country, coal being cheap and available in abundance is currently the most widely used fuel accounting for 55% of primary energy supply and 70% of electricity generation. As the coal plays an important role in our energy mix particularly for power generation, we need to use it efficiently and reduce its environmental implications. We need to frame and implement policies that improve the overall efficiency of power generation from coal. Given that our domestic production of coal is not keeping pace with the ever increasing demand,part of the deficit in coal supply can very well be met by minimizing the wasted energy by making investment in efficient end use plants. Investment in energy efficiencies could be very attractive as an incremental capital investment is recovered in a reasonable time period, energy costs are lowered and energy productivity enhanced.
A one percentage point improvement in the efficiency of a conventional pulverised coal combustion plant results in a 2-3% reduction in Carbon-dioxide emissions. Highly efficient modern coal plants emit almost 40% less Carbon-dioxide than the average coal plant currently installed. The average efficiency of pulverized coal-fired plants is currently about 35% compared to 45% for the most efficient plants.
Coal use has huge environmental foot print particularly when it is put to use for power generation. A number of technologies have been developed in the recent past to meet coal’s environmental challenges and collectively these are known as Clean Coal Technologies.
Broadly Clean Coal Technologies include –
Washing of coal,
Coal Gasification,
Coal Bed Methane and Coal Mine Methane extraction
Underground Coal Gasification
Coal Liquefaction
Coal conversion technologies for power generation like Fluidised Bed Combustion, Super critical and Ultra Supercritical technologies, Integrated Gas Combined Cycle, Carbon Capture and Storage, Oxyfuel etc.
The Government has already awarded 33 blocks for exploration and exploitation of CBM in four rounds of bidding and two blocks have reportedly entered into commercial production. Coal India Limited has successfully implemented a CMM project in association with UNDP in BCCL area.
The Government has notified coal gasification and coal liquefaction as end uses under captive mining policy. Two coal blocks have already been allotted to two private companies for development of CTL plants in the State of Orissa.
Use of coal as mined is not easy in view of the contaminants that are inherent in the coal seams and those which get associated in the course of mining. These impurities make it difficult even to maintain the in-situ quality of coal as it occurs in a seam and thus require cleaning of run of mine coal to a desired level so that quality aspects and concerns of consumers are properly addressed.
Indian coals are high in ash content, as high as 45% or even higher. Ash consumes thermal energy while coal is burnt in boilers. Reduction of ash in the coal that is fired in boilers helps in reducing the wastage of thermal energy and leads to lesser consumption of coal for producing the same amount of thermal energy. Reduced coal consumption eventually helps in reducing Green House Gas emission such as Carbon-dioxide and improves the thermal efficiency of power plants. A cost effective and significant step towards improving power plant efficiency and reducing the Green House Gasesemissions from the coal-fired power plants in India would be to increase the availability of clean beneficiated coals using appropriate beneficiation technologies.
I would like to reiterate that we need to make coal more environment friendly with proper planning and implementation right from conceptual stage. Washeries should be considered as profit centers of a mining project.
We have taken proactive measures on coal beneficiation that also ensures consistent supply of quality and sized coal to customers. In CIL, which is the single largest coal producing company in the world, the coal washing capacity is confined to 17 washeries operating today. Twelve are dedicated to wash coking coal with a capacity of 22.18 Million tonne per year and five are operational for non-coking coal with a capacity of 17.22 Million tonne per year. Coal India has planned to create additional washing capacity in the country through sixteen new coal washeries in first phase. The total installed capacity of these new washeries will be 92.1 Million tonne per year. Ten will be dedicated for non-coking coal with total capacity of 73.5 Million tonne per year and six for coking coal and their total capacity will be 18.6 Mty. Private participation is also being encouraged for installation of washeries to meet demand supply gap of washed coal.
When the issue of adoption of efficient and environmental friendly technologies comes up, the only available technology for power units is the Super Critical technology. Already eleven supercritical units with a total capacity of 7,400MW have been installed and a large number of supercritical units are under construction. About 50 percent of coal-based capacity addition in the Twelfth Plan is expected be based on supercritical technology. For the Thirteenth Plan, it has been decided that all coal fired capacity addition shall be through supercritical units. Moreover, integrated gasification with combined cycle plants is one of the focus areas for research in the country. Though this technology is commercialized, research efforts are being carried out to make it commercially viable to suit Indian coal – as it carries more ash content.
I am sure that this seminar will deliberate the relevant issues and come out with possible solutions for making our energy plans sustainable. While most of the above issues are taken care of by the policy makers, necessary additional policies, monitoring and regulatory mechanism are to be put in place to have total implementation.”
Text of the Minister’s speech is as follows:
“Energy security and environmental considerations are the two big challenges the world is facing today. India is not exceptional to these challenges but the difference is that our developmental goals are more pressing compared to the global environmental considerations and the fact that our dependence on coal in meeting our energy requirements would continue in near future also makes it further challenging.
For sustainable growth rate of 8%, we need to increase the primary energy supply by three times and electricity generation by five times by 2031-32. The energy demand keeps on increasing due to rising population, accelerated industrialization and urbanization.
I am pleased to inform that performance of Coal India Ltd. in terms of coal production, coal dispatch and also coal supplies to the power sector has been very good during the month of September, 2013 as well as during the Second Quarter of the current financial year. In September, 2013 coal production has increased by 15.6%, off-take by 9.2% and coal supply to power sector by 9% as compared to September, 2012.
In the quarter ending September, 2013, coal production has shown a growth of 9.6%, coal dispatch 7.2% and coal supplies to power sector 7% over the second quarter of last financial year. This has led to a growth of 7% in coal based power generation.
In our country, coal being cheap and available in abundance is currently the most widely used fuel accounting for 55% of primary energy supply and 70% of electricity generation. As the coal plays an important role in our energy mix particularly for power generation, we need to use it efficiently and reduce its environmental implications. We need to frame and implement policies that improve the overall efficiency of power generation from coal. Given that our domestic production of coal is not keeping pace with the ever increasing demand,part of the deficit in coal supply can very well be met by minimizing the wasted energy by making investment in efficient end use plants. Investment in energy efficiencies could be very attractive as an incremental capital investment is recovered in a reasonable time period, energy costs are lowered and energy productivity enhanced.
A one percentage point improvement in the efficiency of a conventional pulverised coal combustion plant results in a 2-3% reduction in Carbon-dioxide emissions. Highly efficient modern coal plants emit almost 40% less Carbon-dioxide than the average coal plant currently installed. The average efficiency of pulverized coal-fired plants is currently about 35% compared to 45% for the most efficient plants.
Coal use has huge environmental foot print particularly when it is put to use for power generation. A number of technologies have been developed in the recent past to meet coal’s environmental challenges and collectively these are known as Clean Coal Technologies.
Broadly Clean Coal Technologies include –
Washing of coal,
Coal Gasification,
Coal Bed Methane and Coal Mine Methane extraction
Underground Coal Gasification
Coal Liquefaction
Coal conversion technologies for power generation like Fluidised Bed Combustion, Super critical and Ultra Supercritical technologies, Integrated Gas Combined Cycle, Carbon Capture and Storage, Oxyfuel etc.
The Government has already awarded 33 blocks for exploration and exploitation of CBM in four rounds of bidding and two blocks have reportedly entered into commercial production. Coal India Limited has successfully implemented a CMM project in association with UNDP in BCCL area.
The Government has notified coal gasification and coal liquefaction as end uses under captive mining policy. Two coal blocks have already been allotted to two private companies for development of CTL plants in the State of Orissa.
Use of coal as mined is not easy in view of the contaminants that are inherent in the coal seams and those which get associated in the course of mining. These impurities make it difficult even to maintain the in-situ quality of coal as it occurs in a seam and thus require cleaning of run of mine coal to a desired level so that quality aspects and concerns of consumers are properly addressed.
Indian coals are high in ash content, as high as 45% or even higher. Ash consumes thermal energy while coal is burnt in boilers. Reduction of ash in the coal that is fired in boilers helps in reducing the wastage of thermal energy and leads to lesser consumption of coal for producing the same amount of thermal energy. Reduced coal consumption eventually helps in reducing Green House Gas emission such as Carbon-dioxide and improves the thermal efficiency of power plants. A cost effective and significant step towards improving power plant efficiency and reducing the Green House Gasesemissions from the coal-fired power plants in India would be to increase the availability of clean beneficiated coals using appropriate beneficiation technologies.
I would like to reiterate that we need to make coal more environment friendly with proper planning and implementation right from conceptual stage. Washeries should be considered as profit centers of a mining project.
We have taken proactive measures on coal beneficiation that also ensures consistent supply of quality and sized coal to customers. In CIL, which is the single largest coal producing company in the world, the coal washing capacity is confined to 17 washeries operating today. Twelve are dedicated to wash coking coal with a capacity of 22.18 Million tonne per year and five are operational for non-coking coal with a capacity of 17.22 Million tonne per year. Coal India has planned to create additional washing capacity in the country through sixteen new coal washeries in first phase. The total installed capacity of these new washeries will be 92.1 Million tonne per year. Ten will be dedicated for non-coking coal with total capacity of 73.5 Million tonne per year and six for coking coal and their total capacity will be 18.6 Mty. Private participation is also being encouraged for installation of washeries to meet demand supply gap of washed coal.
When the issue of adoption of efficient and environmental friendly technologies comes up, the only available technology for power units is the Super Critical technology. Already eleven supercritical units with a total capacity of 7,400MW have been installed and a large number of supercritical units are under construction. About 50 percent of coal-based capacity addition in the Twelfth Plan is expected be based on supercritical technology. For the Thirteenth Plan, it has been decided that all coal fired capacity addition shall be through supercritical units. Moreover, integrated gasification with combined cycle plants is one of the focus areas for research in the country. Though this technology is commercialized, research efforts are being carried out to make it commercially viable to suit Indian coal – as it carries more ash content.
I am sure that this seminar will deliberate the relevant issues and come out with possible solutions for making our energy plans sustainable. While most of the above issues are taken care of by the policy makers, necessary additional policies, monitoring and regulatory mechanism are to be put in place to have total implementation.”
Coffee consumption to touch over 125,000 tonnes
Bangalore: The Coffee Board of India has estimated consumption in India to be around 125,000 tonnes for 2013. Domestic consumption is growing at a rate of 5-6 per cent annually since 2010.
This is almost double the figure when compared with that of United States Department of Agriculture, which recently pegged the Indian consumption at 66,000 tonnes, while the International Coffee Organisation (ICO) has estimated it at over 100,000 tonnes. “We have commissioned a study to assess the exact consumption of coffee in India and the results of the study will be available by the end of December this year,” Coffee Board of India Chairman Jawaid Akhtar said. He said the domestic consumption was 58,000 tonnes in 1987 when the country's population was 820 million. In 2011, the consumption crossed the 1,00,000 tonnes mark, while the population touched 1.21 billion. “About 7-8 years ago, the domestic consumption was growing very slowly and now, it is growing faster. South India is the largest consumer of coffee at almost 75 per cent of the total consumption. The Coffee Board is making efforts to push the consumption in western, northern and eastern parts of the country,” Akhtar said.
“The Board is organising events like India International Coffee Festival (IICF) to project Indian coffee as 'good coffee' and specialty coffee. In this direction, we organised our IICF at New Delhi in 2012,” he said.
Recently, the ICO stated that the consumption of coffee is growing rapidly in exporting countries like Brazil, Indonesia and India. It has pegged the Indian consumption at 114,000 tonnes, showing a growth of 4.8 per cent annually.
“Assuming that the consumption has grown only at 5-6 per cent year on year since 2010, the consumption in 2013 could be in the range of 125,000 tonnes,” Akhtar told Business Standard.
The Coffee Board has pegged the production of coffee for the year 2013-14 at 347,000 tonnes in its post blossom estimates. However, the chairman stated that it could come down by at least 10 per cent due to heavy rains between June and August this year, which resulted into ‘wet foot’ and ‘black rot’ diseases.
In an effort to increase awareness about drinking coffee and its health benefits, the Coffee Board in association with India Coffee Trust is organizing the fifth edition of IICF 2014 at Bangalore from January 21 to 25, 2014.
“The event provides avenues for enterprise development through value addition while simultaneously contributing to the creation of skill based jobs, particularly in non-conventional coffee drinking areas at the consumer end. To facilitate entrepreneurial development, the Coffee Board has been providing training sessions on coffee roasting, brewing among others,” Akhtar said.
IICF 2014 is expected to see participation of 1,000 delegates for the conference and workshops and over 10,000 visitors at the exhibition. National and international experts in the coffee industry including policy makers, exporters, manufacturers and planters are likely to attend this flagship event of the Coffee Board.
This is almost double the figure when compared with that of United States Department of Agriculture, which recently pegged the Indian consumption at 66,000 tonnes, while the International Coffee Organisation (ICO) has estimated it at over 100,000 tonnes. “We have commissioned a study to assess the exact consumption of coffee in India and the results of the study will be available by the end of December this year,” Coffee Board of India Chairman Jawaid Akhtar said. He said the domestic consumption was 58,000 tonnes in 1987 when the country's population was 820 million. In 2011, the consumption crossed the 1,00,000 tonnes mark, while the population touched 1.21 billion. “About 7-8 years ago, the domestic consumption was growing very slowly and now, it is growing faster. South India is the largest consumer of coffee at almost 75 per cent of the total consumption. The Coffee Board is making efforts to push the consumption in western, northern and eastern parts of the country,” Akhtar said.
“The Board is organising events like India International Coffee Festival (IICF) to project Indian coffee as 'good coffee' and specialty coffee. In this direction, we organised our IICF at New Delhi in 2012,” he said.
Recently, the ICO stated that the consumption of coffee is growing rapidly in exporting countries like Brazil, Indonesia and India. It has pegged the Indian consumption at 114,000 tonnes, showing a growth of 4.8 per cent annually.
“Assuming that the consumption has grown only at 5-6 per cent year on year since 2010, the consumption in 2013 could be in the range of 125,000 tonnes,” Akhtar told Business Standard.
The Coffee Board has pegged the production of coffee for the year 2013-14 at 347,000 tonnes in its post blossom estimates. However, the chairman stated that it could come down by at least 10 per cent due to heavy rains between June and August this year, which resulted into ‘wet foot’ and ‘black rot’ diseases.
In an effort to increase awareness about drinking coffee and its health benefits, the Coffee Board in association with India Coffee Trust is organizing the fifth edition of IICF 2014 at Bangalore from January 21 to 25, 2014.
“The event provides avenues for enterprise development through value addition while simultaneously contributing to the creation of skill based jobs, particularly in non-conventional coffee drinking areas at the consumer end. To facilitate entrepreneurial development, the Coffee Board has been providing training sessions on coffee roasting, brewing among others,” Akhtar said.
IICF 2014 is expected to see participation of 1,000 delegates for the conference and workshops and over 10,000 visitors at the exhibition. National and international experts in the coffee industry including policy makers, exporters, manufacturers and planters are likely to attend this flagship event of the Coffee Board.
Indian cashews are favourites in Japan markets
Mangalore: The import of cashew kernels by Japan crossed 7,600 tonnes in 2012.
This figure assumes significance to India, as Japan is the fourth major export-destination for Indian cashew.
The US, the UAE and the Netherlands are the top three destinations for the export of cashew kernels from India.
Of the 7,602 tonnes of cashew kernels imported by Japan in 2012, India’s share was 6,099 tonnes.
QUALITY
Walter D’Souza, Chairman of Federation of Indian Export Organisations (Southern Region), told Business Line that quality Indian cashews have a preference in Japan.
Quality always has a cost, and Japan was one of the first countries to have come to terms with reality.
Many of the Indian exporters command a good premium in prices for the supply of quality consistent with high standards Japan expects from the importers, he said.
G. Giridhar Prabhu, Proprietor of the Mangalore-based Achal Industries (who has been exporting to Japan since 1988), said that Japan prefers good quality cashew of Goa, Maharashtra or Karnataka origins.
K. Prakash Rao, owner of Kalbavi Cashews and cashew exporter, said that the consumption of cashew in Japan is growing slowly, but steadily.
Quoting George Ishiguro of the Japan-based Blaxton Corporation, Rao said that there is increase in the programmes featuring the nutritious effects of nuts in the Japanese television channels.
The consumers have become more selective for healthy and tasty food. (Ishiguro is a Japanese trader of cashew nuts and dried fruits).
The fear of radioactive pollution by the 2011 Japanese Tsunami has made the consumers more safety conscious. They are now looking at chemical free and radiation free food, he said.
VIETNAM ROLE
Prabhu said that though Japan has long favoured the Indian quality, Vietnamese have also made inroads into Japan of late.
While India contributed 80 per cent to the cashew kernel imports in Japan during 2012, Vietnam contributed 18 per cent. D’Souza said that even though Vietnam should have a larger share in the imports into Japan, there has been a dilution in the quality of imports from Vietnam into Japan.
“Indian exporters have been consistent in terms of quality and timely performance. Both these factors weighed heavily in favour of India,” he said.
Prakash Rao said that new comers such as Kenya are also making their entry into Japanese market. Japan imported 95 tonnes of cashew kernels from Kenya in 2012.
However, Kenya exported 86 tonnes in the first seven months of 2013 itself. (The total import of cashew kernel into Japan during the first seven months of 2013 stood at 4,966.3 tonnes. Of this, the share of India stood at 4,219.4 tonnes.)
SCOPE FOR FUTURE
D’Souza said that India can certainly cross the 10,000-tonne mark by 2015, if more Indian exporters are able to raise the bar in terms of Japanese specifications, quality, and performance parameters.
Clarifying that Indian exporters are adhering to the internationally accepted specifications, he said Japan has created its own niche markets of quality and grading standards.
These are much above the general specifications followed by other importing countries, he added.
This figure assumes significance to India, as Japan is the fourth major export-destination for Indian cashew.
The US, the UAE and the Netherlands are the top three destinations for the export of cashew kernels from India.
Of the 7,602 tonnes of cashew kernels imported by Japan in 2012, India’s share was 6,099 tonnes.
QUALITY
Walter D’Souza, Chairman of Federation of Indian Export Organisations (Southern Region), told Business Line that quality Indian cashews have a preference in Japan.
Quality always has a cost, and Japan was one of the first countries to have come to terms with reality.
Many of the Indian exporters command a good premium in prices for the supply of quality consistent with high standards Japan expects from the importers, he said.
G. Giridhar Prabhu, Proprietor of the Mangalore-based Achal Industries (who has been exporting to Japan since 1988), said that Japan prefers good quality cashew of Goa, Maharashtra or Karnataka origins.
K. Prakash Rao, owner of Kalbavi Cashews and cashew exporter, said that the consumption of cashew in Japan is growing slowly, but steadily.
Quoting George Ishiguro of the Japan-based Blaxton Corporation, Rao said that there is increase in the programmes featuring the nutritious effects of nuts in the Japanese television channels.
The consumers have become more selective for healthy and tasty food. (Ishiguro is a Japanese trader of cashew nuts and dried fruits).
The fear of radioactive pollution by the 2011 Japanese Tsunami has made the consumers more safety conscious. They are now looking at chemical free and radiation free food, he said.
VIETNAM ROLE
Prabhu said that though Japan has long favoured the Indian quality, Vietnamese have also made inroads into Japan of late.
While India contributed 80 per cent to the cashew kernel imports in Japan during 2012, Vietnam contributed 18 per cent. D’Souza said that even though Vietnam should have a larger share in the imports into Japan, there has been a dilution in the quality of imports from Vietnam into Japan.
“Indian exporters have been consistent in terms of quality and timely performance. Both these factors weighed heavily in favour of India,” he said.
Prakash Rao said that new comers such as Kenya are also making their entry into Japanese market. Japan imported 95 tonnes of cashew kernels from Kenya in 2012.
However, Kenya exported 86 tonnes in the first seven months of 2013 itself. (The total import of cashew kernel into Japan during the first seven months of 2013 stood at 4,966.3 tonnes. Of this, the share of India stood at 4,219.4 tonnes.)
SCOPE FOR FUTURE
D’Souza said that India can certainly cross the 10,000-tonne mark by 2015, if more Indian exporters are able to raise the bar in terms of Japanese specifications, quality, and performance parameters.
Clarifying that Indian exporters are adhering to the internationally accepted specifications, he said Japan has created its own niche markets of quality and grading standards.
These are much above the general specifications followed by other importing countries, he added.
Kalpataru Power Transmission bags Rs 620 crore orders
Kalpataru Power Transmission has bagged orders worth Rs 620 crore, the Mumbai-based engineering, procurement and construction company said Thursday.
These orders include a Rs 463 crore order from Tamil Nadu Transmission Corporation for setting up a transmission line.
The company also announced bagging a Rs 94 crore project for setting up a 160 km long liquefied petroleum gas pipeline from HPCL.
"The order pipeline remains strong this year. In the first half we have won orders worth Rs 1,750 crore and expect the momentum to continue in the second half also, as many projects are in the final stage of award," Ranjit Singh, managing director, was quoted as saying in the statement.
Kalpataru Power Transmission is a EPC companies operating in power transmission and distribution, oil and gas pipeline, railways, infrastructure development, civil contracting and warehousing and logistics business. The company is currently executing projects in India,
Africa, Middle East, Australia, North America and Far East.
These orders include a Rs 463 crore order from Tamil Nadu Transmission Corporation for setting up a transmission line.
The company also announced bagging a Rs 94 crore project for setting up a 160 km long liquefied petroleum gas pipeline from HPCL.
"The order pipeline remains strong this year. In the first half we have won orders worth Rs 1,750 crore and expect the momentum to continue in the second half also, as many projects are in the final stage of award," Ranjit Singh, managing director, was quoted as saying in the statement.
Kalpataru Power Transmission is a EPC companies operating in power transmission and distribution, oil and gas pipeline, railways, infrastructure development, civil contracting and warehousing and logistics business. The company is currently executing projects in India,
Africa, Middle East, Australia, North America and Far East.
Costume jewellery clocked 20-30% growth in FY14
Kolkata: Higher gold prices and less awareness among Indians about customs clearance norms have worked in favour of costume jewellers in the country. Costume jewellers say that they have clocked 20-30% growth in the current fiscal with women from affluent households embracing such jewellery for attending weddings and parties in foreign locales.
The spectacular growth in costume jewellery has emerged as a threat to the gold trade, which has not witnessed much growth as yellow metal prices have surged due to a weak rupee, touching Rs 33,000 per 10 gm.
"It is true that costume jewellery is a major threat to us. We are advising jewellers to come up with 14-carat gold items to ward off this threat," said Haresh Soni, chairman, All India Gem & Jewellery Trade Federation (GJF).
Costume jewellers say that their trendy as well as heavylook jewellery is even drawing the attention of the affluent class. Rajesh Chheda, partner of Mumbai's top costume jewellery firm Tip Top Point, said that women from South Bombay (SOBO) have started buying from their shop. "The interest among this class for costume jewellery is on the rise and they are coming to our shop in SOBO. We are expecting good demand from them in the upcoming festive and wedding season," he said.
The firm has another outfit in Borivali. Incidentally, demand for costume jewellery comes more from northern and western India. Bangaloreans — both working women as well as college going girls — now-a-days prefer light weight costume jewellery in keeping with the youth mindset that is completely accessoryconscious, the global fashion trends, the importance of looking 'fashionable' rather than looking 'rich', and the need to 'fit in' with your friends rather than looking 'ostentatious'.
Pointed out Vasundhara Mantri, a professional jewellery designer, that women never hesitate to wear imitation jewellery while attending parties, social events, wedding ceremonies because they have contemporary designs with a classic touch bringing in the best of both worlds.
"Disposable income to buy gold jewellery in Indian households has dried up. So, there is a shift towards costume jewellery," added Mantri. Costume jewellery is largely made of brass, cast iron, nickel, plastic beads and stones, instead of precious metals and gems. It does not have resale value and is available in the range of less costhan Rs 100 and may go as high as Rs 50,000 depending upon the item.
Deepika Sehgal, co-founder of Mumbai-based Miss Flurrty, said that the industry size is expected to touch Rs 15,000 crore by December 2015, according to an Assocham study, up from Rs 8,000 crore in December 2012. Women are now embracing this kind of jewellery for attending ceremonies in foreign locales as well.
"The tough customs norms have forced these women to carry costume jewellery so that they do not face any questioning while travelling back to India," said Chheda. But the GJF chairman feels that since there is very little awareness among people about customs norms, they misunderstand the entire process. "While leaving India, they can get their jewellery checked at the customs and take the authority's letter so that while returning to India they do not face any hassle," he explained.
Hyderabad-based jewellery designer Suhani Pittie said: "While demand from the US and European markets has been on the rise over the last 9-12 months (in volume terms), demand from rural market has also grown substantially over the years. Gold is and will always be an emotional and investment-oriented purchase in our country. But price being such a constraint, imitation jewellery, via its large canvas of raw material, offers various ways to phrase your expression. In fact, the imitation/fashion jewellery market sees a rise of nearly 85% during festivals. It is growing by nearly 20% per annum".
The spectacular growth in costume jewellery has emerged as a threat to the gold trade, which has not witnessed much growth as yellow metal prices have surged due to a weak rupee, touching Rs 33,000 per 10 gm.
"It is true that costume jewellery is a major threat to us. We are advising jewellers to come up with 14-carat gold items to ward off this threat," said Haresh Soni, chairman, All India Gem & Jewellery Trade Federation (GJF).
Costume jewellers say that their trendy as well as heavylook jewellery is even drawing the attention of the affluent class. Rajesh Chheda, partner of Mumbai's top costume jewellery firm Tip Top Point, said that women from South Bombay (SOBO) have started buying from their shop. "The interest among this class for costume jewellery is on the rise and they are coming to our shop in SOBO. We are expecting good demand from them in the upcoming festive and wedding season," he said.
The firm has another outfit in Borivali. Incidentally, demand for costume jewellery comes more from northern and western India. Bangaloreans — both working women as well as college going girls — now-a-days prefer light weight costume jewellery in keeping with the youth mindset that is completely accessoryconscious, the global fashion trends, the importance of looking 'fashionable' rather than looking 'rich', and the need to 'fit in' with your friends rather than looking 'ostentatious'.
Pointed out Vasundhara Mantri, a professional jewellery designer, that women never hesitate to wear imitation jewellery while attending parties, social events, wedding ceremonies because they have contemporary designs with a classic touch bringing in the best of both worlds.
"Disposable income to buy gold jewellery in Indian households has dried up. So, there is a shift towards costume jewellery," added Mantri. Costume jewellery is largely made of brass, cast iron, nickel, plastic beads and stones, instead of precious metals and gems. It does not have resale value and is available in the range of less costhan Rs 100 and may go as high as Rs 50,000 depending upon the item.
Deepika Sehgal, co-founder of Mumbai-based Miss Flurrty, said that the industry size is expected to touch Rs 15,000 crore by December 2015, according to an Assocham study, up from Rs 8,000 crore in December 2012. Women are now embracing this kind of jewellery for attending ceremonies in foreign locales as well.
"The tough customs norms have forced these women to carry costume jewellery so that they do not face any questioning while travelling back to India," said Chheda. But the GJF chairman feels that since there is very little awareness among people about customs norms, they misunderstand the entire process. "While leaving India, they can get their jewellery checked at the customs and take the authority's letter so that while returning to India they do not face any hassle," he explained.
Hyderabad-based jewellery designer Suhani Pittie said: "While demand from the US and European markets has been on the rise over the last 9-12 months (in volume terms), demand from rural market has also grown substantially over the years. Gold is and will always be an emotional and investment-oriented purchase in our country. But price being such a constraint, imitation jewellery, via its large canvas of raw material, offers various ways to phrase your expression. In fact, the imitation/fashion jewellery market sees a rise of nearly 85% during festivals. It is growing by nearly 20% per annum".
Venezuelan oil firm signs agreements with RIL, OVL
PDVSA will supply between 3,00,000 and 4,00,000 barrels per day of heavy crude to Reliance's two refineries in Jamnagar under 15-year contract
New Delhi: In a sign of increasing Indian involvement in Venezuela, the South American country’s state oil company, Petroleos de Venezuela (PdVSA), has signed two agreements with state-run ONGC Videsh Ltd (OVL) and private sector giant Reliance Industries Ltd (RIL).
Mukesh Ambani-led RIL and PdVSA have signed a joint study agreement for Ayacucho block 8 in the Orinoco oil belt of that country. According to the study agreement, both parties will jointly evaluate the development plan of the block. RIL and PdVSA have also extended the term of the memorandum of understanding (MoU) signed between the parties last year by one year for continued cooperation.
Meanwhile, an MoU was signed by D K Sarraf, managing director, OVL, and Ruben iguera, director of new development, PdVSA on Thursday. The pact encompasses strategic cooperation and participation in the exploration and production of hydrocarbon resources in the oil-rich Faja area of Venezuela. This would facilitate OVL and PdVSA to explore available opportunities through joint collaboration and hence, enhance OVL's interest in Venezuela.
Sudhir Vasudeva, chairman, ONGC group of companies, said: “This MoU underlines the spirit of collaboration between two exploration and production giants in India and Venezuela. Venezuela has the world’s largest reserves and we have a huge market. We intend to use this opportunity to further our interests in this oil rich country.” OVL currently has stakes in two producing projects in Venezuela--Petro-Carabobo and Petro-Indovenezolana--with investments of about $341 million.
RIL and PdVSA had signed a 15-year heavy crude oil supply contract and an MoU to develop Venezuelan heavy oil fields last year. According to that, PdVSA will supply between 300,000 and 400,000 barrels a day of Venezuelan heavy crude oil to RIL’s two refineries in Jamnagar under a 15-year contract.
New Delhi: In a sign of increasing Indian involvement in Venezuela, the South American country’s state oil company, Petroleos de Venezuela (PdVSA), has signed two agreements with state-run ONGC Videsh Ltd (OVL) and private sector giant Reliance Industries Ltd (RIL).
Mukesh Ambani-led RIL and PdVSA have signed a joint study agreement for Ayacucho block 8 in the Orinoco oil belt of that country. According to the study agreement, both parties will jointly evaluate the development plan of the block. RIL and PdVSA have also extended the term of the memorandum of understanding (MoU) signed between the parties last year by one year for continued cooperation.
Meanwhile, an MoU was signed by D K Sarraf, managing director, OVL, and Ruben iguera, director of new development, PdVSA on Thursday. The pact encompasses strategic cooperation and participation in the exploration and production of hydrocarbon resources in the oil-rich Faja area of Venezuela. This would facilitate OVL and PdVSA to explore available opportunities through joint collaboration and hence, enhance OVL's interest in Venezuela.
Sudhir Vasudeva, chairman, ONGC group of companies, said: “This MoU underlines the spirit of collaboration between two exploration and production giants in India and Venezuela. Venezuela has the world’s largest reserves and we have a huge market. We intend to use this opportunity to further our interests in this oil rich country.” OVL currently has stakes in two producing projects in Venezuela--Petro-Carabobo and Petro-Indovenezolana--with investments of about $341 million.
RIL and PdVSA had signed a 15-year heavy crude oil supply contract and an MoU to develop Venezuelan heavy oil fields last year. According to that, PdVSA will supply between 300,000 and 400,000 barrels a day of Venezuelan heavy crude oil to RIL’s two refineries in Jamnagar under a 15-year contract.
RBI allows banks to borrow from international and multilateral financial institutions
Central bank sasy such borrowings shall be eligible for concessional swap facility of RBI
Mumbai: The Reserve Bank of India (RBI) has granted permission to banks to borrow from international/multilateral financial institutions for a limited period of up to November 30, said RBI on Thursday.
RBI also said such borrowings should be for the purpose of general banking business and not for capital augmentation.
According to the central bank, such borrowings shall be eligible for the concessional swap facility of RBI.
Earlier, RBI had allowed banks to borrow from their head office of overseas branches or correspondents outside India up to hundred per cent of its unimpaired Tier-I capital or $10 million, whichever is higher.
Mumbai: The Reserve Bank of India (RBI) has granted permission to banks to borrow from international/multilateral financial institutions for a limited period of up to November 30, said RBI on Thursday.
RBI also said such borrowings should be for the purpose of general banking business and not for capital augmentation.
According to the central bank, such borrowings shall be eligible for the concessional swap facility of RBI.
Earlier, RBI had allowed banks to borrow from their head office of overseas branches or correspondents outside India up to hundred per cent of its unimpaired Tier-I capital or $10 million, whichever is higher.
India to strengthen cooperation with ASEAN: PM
New Delhi: In order to increase cooperation with South East Asian countries on economic and security issues, Dr Manmohan Singh, the Prime Minister of India, announced a separate Mission for Association of South East Asian Nations (ASEAN) region to be set up in Jakarta, Indonesia. The mission will be assigned a full-time resident Ambassador.
Dr Manmohan Singh also represented India’s willingness to sign the Free Trade Agreement (FTA) with ASEAN on services and investment by the end of this year and its early implementation, while addressing the 11th ASEAN-India Summit. The agreement will also boost bilateral trade among the regions from US$ 76 billion last year to US$ 100 billion by 2015.
India and ASEAN have established a comprehensive agenda of cooperation and a wide-ranging framework to pursue it over the last two decades.
“Today, we stand on the threshold of the third decade of our engagement. In keeping with our substantial achievements, the recent elevation of our ties to a strategic partnership and the rich potential of our cooperation, I feel it would be appropriate for me to take this opportunity to announce that India will soon set up a separate Mission to the ASEAN in Jakarta with a full-time resident Ambassador,” Dr Singh added.
He further highlighted that all the countries have equal stakes in the security and prosperity of our shared Asian neighbourhood. The scope of India’s engagement with East and Southeast Asia has grown steadily in the last two decades.
“We seek to promote not only mutually beneficial bilateral relations, but also to work institutionally with regional partners and foster a climate that is conducive to stability, security and economic development in our region,” said Dr Singh.
The Prime Minister emphasised that ASEAN has paved the way for a great level of cooperation and integration, not only among themselves, but also in the broader region.
“For India, it is an article of faith of our Look-East policy that ASEAN must remain central to the future evolution of regional mechanisms, which must be open and inclusive. We share your vision and aspirations for the region and we applaud your march towards an ASEAN Economic Community in 2015,” pointed out Dr Singh.
Dr Manmohan Singh also represented India’s willingness to sign the Free Trade Agreement (FTA) with ASEAN on services and investment by the end of this year and its early implementation, while addressing the 11th ASEAN-India Summit. The agreement will also boost bilateral trade among the regions from US$ 76 billion last year to US$ 100 billion by 2015.
India and ASEAN have established a comprehensive agenda of cooperation and a wide-ranging framework to pursue it over the last two decades.
“Today, we stand on the threshold of the third decade of our engagement. In keeping with our substantial achievements, the recent elevation of our ties to a strategic partnership and the rich potential of our cooperation, I feel it would be appropriate for me to take this opportunity to announce that India will soon set up a separate Mission to the ASEAN in Jakarta with a full-time resident Ambassador,” Dr Singh added.
He further highlighted that all the countries have equal stakes in the security and prosperity of our shared Asian neighbourhood. The scope of India’s engagement with East and Southeast Asia has grown steadily in the last two decades.
“We seek to promote not only mutually beneficial bilateral relations, but also to work institutionally with regional partners and foster a climate that is conducive to stability, security and economic development in our region,” said Dr Singh.
The Prime Minister emphasised that ASEAN has paved the way for a great level of cooperation and integration, not only among themselves, but also in the broader region.
“For India, it is an article of faith of our Look-East policy that ASEAN must remain central to the future evolution of regional mechanisms, which must be open and inclusive. We share your vision and aspirations for the region and we applaud your march towards an ASEAN Economic Community in 2015,” pointed out Dr Singh.
Friday, October 11, 2013
JSW Steel acquires Heidelberg Cement's grinding unit at Raigad
Kolkata: JSW SteelBSE 1.61 % has acquired Heidelberg Cement India's 0.6 million tonne per annum (mtpa) cement grinding facility in Raigad, Maharashtra, "as a going concern on slump sale basis." The transaction which was carried out for an undisclosed sum.
The two companies signed the Business Transfer Agreements for the acquisition on October 5, according to filings made by bot Hidelberg and JSW Steel with the BSE on Monday.
"The transaction will be consummated only after obtaining all relevant approvals required under applicable laws," JSW Steel said. However, it did not disclose the value of the deal. The board of the two companies had decided to enter into a deal on May 21, 2013.
JSW Steel had acquired the company through the erstwhile JSW Ispat SteelBSE 0.40 %, which is now its merged associate firm. Announcing the deal, JSW Ispat had then said the acquisition would enable it develop a stable outlet for evacuation of slag.
Heidelberg Cement had termed the deal as part of company's philosophy of "divesting less strategic assets with lower margins", which would enable it to "focus on more strategic and key operations in central India where the company had recently expanded its cement capacity from 2 to 5 million tonne per annum."
The two companies signed the Business Transfer Agreements for the acquisition on October 5, according to filings made by bot Hidelberg and JSW Steel with the BSE on Monday.
"The transaction will be consummated only after obtaining all relevant approvals required under applicable laws," JSW Steel said. However, it did not disclose the value of the deal. The board of the two companies had decided to enter into a deal on May 21, 2013.
JSW Steel had acquired the company through the erstwhile JSW Ispat SteelBSE 0.40 %, which is now its merged associate firm. Announcing the deal, JSW Ispat had then said the acquisition would enable it develop a stable outlet for evacuation of slag.
Heidelberg Cement had termed the deal as part of company's philosophy of "divesting less strategic assets with lower margins", which would enable it to "focus on more strategic and key operations in central India where the company had recently expanded its cement capacity from 2 to 5 million tonne per annum."
Tata Power to set up coal-fired plant in Myanmar
New Delhi: Tata Power has forayed into Myanmar and has begun feasibility studies to set up a coal-fired power station there. The project is expected to be commissioned in 2019-20. This would be the first project by the Tata Group Company in the South-East Asian nation.
“Yes, Tata Power has executed a memorandum of understanding (MoU) with the Government of Myanmar for setting up an imported coal-based power plant,” a senior company official told Business Line.
The Rs 19,399-crore Tata Power is aggressively looking to expand its portfolio overseas. At present, it is building hydro electric projects in Bhutan, Georgia and Zambia. The firm is also developing two wind power projects in South Africa.
In Myanmar, the power plant is proposed to be located in Ngayok Kaung, Ayeyarwaddy region, and would have captive coal berthing arrangements. The Tata Power official did not divulge the capacity of the power station. “The capacity would be finalised based on the feasibility studies. The power plant is estimated to be commissioned in 2019-20,” the official said.
“Yes, Tata Power has executed a memorandum of understanding (MoU) with the Government of Myanmar for setting up an imported coal-based power plant,” a senior company official told Business Line.
The Rs 19,399-crore Tata Power is aggressively looking to expand its portfolio overseas. At present, it is building hydro electric projects in Bhutan, Georgia and Zambia. The firm is also developing two wind power projects in South Africa.
In Myanmar, the power plant is proposed to be located in Ngayok Kaung, Ayeyarwaddy region, and would have captive coal berthing arrangements. The Tata Power official did not divulge the capacity of the power station. “The capacity would be finalised based on the feasibility studies. The power plant is estimated to be commissioned in 2019-20,” the official said.
L & T gets two EPC orders in UAE, Qatar
Mumbai: Larsen & Toubro has secured two engineering, procurement and construction (EPC) projects worth around Rs.1,100 crore in the hydrocarbon segment in UAE and Qatar. The Indian major has also won the contract for the fuel depot expansion of the Abu Dhabi International Airport.
The depot expansion project aims to upgrade the facility to meet the increased demand for jet fuel over the next 20 years. L&T is to take over the EPC of the Abu Dhabi Oil Refining Company refining, which will raise the storage capacity of aviation fuel depot to 80 million litres.
Viral Shah, analyst at Angel Broking noted, ``The project involves EPC work of a new aviation fuel terminal for developing storage and deliver of Jet A-1 fuel at the Abu Dhabi International Airport. The project is awarded by Takreer, a subsidiary of state owned Abu Dhabi National Oil Company, and is expected to be completed in 30 months. In Qatar, L&T has bagged an EPC contract for third party gas interconnecting facilities in Ras Laffan from Dolphin Energy. The project has a construction period of 20 months.''
L&T is already executing another export gas upgrade facilities project for Dolphin Energy to increase the capacity of the export gas compressors facilities by adding three new compression trains.
The depot expansion project aims to upgrade the facility to meet the increased demand for jet fuel over the next 20 years. L&T is to take over the EPC of the Abu Dhabi Oil Refining Company refining, which will raise the storage capacity of aviation fuel depot to 80 million litres.
Viral Shah, analyst at Angel Broking noted, ``The project involves EPC work of a new aviation fuel terminal for developing storage and deliver of Jet A-1 fuel at the Abu Dhabi International Airport. The project is awarded by Takreer, a subsidiary of state owned Abu Dhabi National Oil Company, and is expected to be completed in 30 months. In Qatar, L&T has bagged an EPC contract for third party gas interconnecting facilities in Ras Laffan from Dolphin Energy. The project has a construction period of 20 months.''
L&T is already executing another export gas upgrade facilities project for Dolphin Energy to increase the capacity of the export gas compressors facilities by adding three new compression trains.
H&M’s Rs 700-cr FDI proposal gets DIPP green signal
New Delhi: The Department of Industrial Policy and Promotion (DIPP) is learnt to have given its approval to Hennes & Mauritz AB’s Rs 700-crore investment proposal, almost six months after the Swedish clothing giant made an application to foray into the Indian single-brand retail market.
The Stockholm-headquartered iconic fashion company’s top brass, including chief executive Karl Johan Persson, is believed to have met DIPP officials last week. After that, they might have sent their responses to the department, which had earlier raised certain questions on the application, submitted in April, according to officials in the ministry of commerce and industry.
“All issues sorted. Now it is for FIPB (Foreign Investment Promotion Board) to take it up in its next meeting,” a senior DIPP official told Business Standard.
FIPB, under the chairmanship of Economic Affairs Secretary Arvind Mayaram, is likely to consider the proposal at its meeting on October 18. Once FIPB gives its final approval, H&M will be allowed to open in the country the 50 stores it had proposed to set up.
H&M, famous for its bold prints and fast-fashion clothing, had sent ist application to DIPP in April, after which the latter had raised several questions on whether the company would be able to strictly adhere to the sourcing norms, in line with the FDI policy for single-brand retail.
According to the extant policy, foreign retailers investing more than 51 per cent can open outlets across the country on the condition that 30 per cent of their sourced sales would come from small- to medium-sized domestic enterprises.
DIPP also had concerns on the brand’s licensing agreement between the parent company and its investors. That has now been resolved.
Endorsed by the likes of super-model Gisele Bundchen and footballer David Beckham in international ad campaigns, H&M will invest euro 100 million in the first phase through its wholly-owned subsidiary.
This is second such proposal from Sweden and also the second largest. Earlier this year the Cabinet Committee on Economic Affairs had cleared furniture-maker Ikea’s Rs.10,500 crore proposal again a leading brand from Sweden but registered in Netherlands.
The Stockholm-headquartered iconic fashion company’s top brass, including chief executive Karl Johan Persson, is believed to have met DIPP officials last week. After that, they might have sent their responses to the department, which had earlier raised certain questions on the application, submitted in April, according to officials in the ministry of commerce and industry.
“All issues sorted. Now it is for FIPB (Foreign Investment Promotion Board) to take it up in its next meeting,” a senior DIPP official told Business Standard.
FIPB, under the chairmanship of Economic Affairs Secretary Arvind Mayaram, is likely to consider the proposal at its meeting on October 18. Once FIPB gives its final approval, H&M will be allowed to open in the country the 50 stores it had proposed to set up.
H&M, famous for its bold prints and fast-fashion clothing, had sent ist application to DIPP in April, after which the latter had raised several questions on whether the company would be able to strictly adhere to the sourcing norms, in line with the FDI policy for single-brand retail.
According to the extant policy, foreign retailers investing more than 51 per cent can open outlets across the country on the condition that 30 per cent of their sourced sales would come from small- to medium-sized domestic enterprises.
DIPP also had concerns on the brand’s licensing agreement between the parent company and its investors. That has now been resolved.
Endorsed by the likes of super-model Gisele Bundchen and footballer David Beckham in international ad campaigns, H&M will invest euro 100 million in the first phase through its wholly-owned subsidiary.
This is second such proposal from Sweden and also the second largest. Earlier this year the Cabinet Committee on Economic Affairs had cleared furniture-maker Ikea’s Rs.10,500 crore proposal again a leading brand from Sweden but registered in Netherlands.
Foreign portfolio investors to get tax benefits similar to FIIs
New Delhi: Foreign Portfolio Investors (FPIs) will get all the tax benefits available to foreign institutional investors (FIIs). They will also not have to fulfil the Know Your Customer norms separately for opening bank accounts, the Finance Ministry said.
On October 5, the Securities and Exchange Board of India had announced a new category of investors, called the FPI, by merging the existing FIIs, sub-accounts and qualified foreign investors. The decision was taken on the basis of recommendations by the K.M. Chandrasekhar Committee, which suggested that the Government could consider bringing more clarity and certainty while prescribing tax provisions for FPIs.
“Taxation benefits available to FIIs would be transferred to FPIs,” a senior Finance Ministry official told Business Line, outlining the Ministry’s effort to bring clarity in the new tax regime.
Withholding tax
Earlier on May 21, the Finance Ministry had said that foreign investors would have to pay only 5 per cent withholding tax (against 20 per cent earlier) on interest earned through investment made in rupee-denominated long-term infrastructure bonds issued by Indian companies and Government securities.
Withholding tax is similar to tax deducted at source, but is meant for non-resident investors.
Foreign investors are also not required to have permanent account numbers to claim lower withholding tax.
Similarly, foreigners investing in the equity market get tax benefits on long-term (investments of more than a year) profit earned, as prescribed by the Double Taxation Avoidance Agreements with various countries.
For example, like India, Mauritius, too, prescribes zero duty on profit earned on selling equities after one year. FIIs using the Mauritius route will not have to pay any tax on long-term profits here.
Vasudha Sundararaman, MD and CEO of SBISG Custodial Services, feel that the Revenue Department needs to give a go-ahead to legislative changes proposed by the Chandrasekhar Committee to give FPIs at par treatment with FIIs. She said, for the successful execution of the regime, it would be vital that KYC requirements of SEBI and the RBI to be on the same page.
According to the Finance Ministry official, RBI’s KYC norms were for opening bank accounts and were, therefore, simpler. “If the two are aligned, it would cause inconvenience to millions of new bank account holders, but not vice versa. In other words, KYC done by SEBI should be adequate for opening bank accounts,” he added.
On the overall structure of FPIs, Sundararaman said, the guidelines by SEBI were clear and had covered all the aspects of FII entry into India. “Approval in flat 10 days is a remarkable step for the success of the FPI regime,” she said. The SBI SG was a member of the committee.
On October 5, the Securities and Exchange Board of India had announced a new category of investors, called the FPI, by merging the existing FIIs, sub-accounts and qualified foreign investors. The decision was taken on the basis of recommendations by the K.M. Chandrasekhar Committee, which suggested that the Government could consider bringing more clarity and certainty while prescribing tax provisions for FPIs.
“Taxation benefits available to FIIs would be transferred to FPIs,” a senior Finance Ministry official told Business Line, outlining the Ministry’s effort to bring clarity in the new tax regime.
Withholding tax
Earlier on May 21, the Finance Ministry had said that foreign investors would have to pay only 5 per cent withholding tax (against 20 per cent earlier) on interest earned through investment made in rupee-denominated long-term infrastructure bonds issued by Indian companies and Government securities.
Withholding tax is similar to tax deducted at source, but is meant for non-resident investors.
Foreign investors are also not required to have permanent account numbers to claim lower withholding tax.
Similarly, foreigners investing in the equity market get tax benefits on long-term (investments of more than a year) profit earned, as prescribed by the Double Taxation Avoidance Agreements with various countries.
For example, like India, Mauritius, too, prescribes zero duty on profit earned on selling equities after one year. FIIs using the Mauritius route will not have to pay any tax on long-term profits here.
Vasudha Sundararaman, MD and CEO of SBISG Custodial Services, feel that the Revenue Department needs to give a go-ahead to legislative changes proposed by the Chandrasekhar Committee to give FPIs at par treatment with FIIs. She said, for the successful execution of the regime, it would be vital that KYC requirements of SEBI and the RBI to be on the same page.
According to the Finance Ministry official, RBI’s KYC norms were for opening bank accounts and were, therefore, simpler. “If the two are aligned, it would cause inconvenience to millions of new bank account holders, but not vice versa. In other words, KYC done by SEBI should be adequate for opening bank accounts,” he added.
On the overall structure of FPIs, Sundararaman said, the guidelines by SEBI were clear and had covered all the aspects of FII entry into India. “Approval in flat 10 days is a remarkable step for the success of the FPI regime,” she said. The SBI SG was a member of the committee.
Godrej Properties to invest Rs 9,000 crore over 10 years
Ahmedabad: Godrej Properties Ltd (GPL) on Saturday said it will invest $1.5 billion (Rs 9,000 crore) in 15 new projects in the next 10 years in the country.
Five of these projects have been launched this year.
The company has already invested nearly Rs 1,000 crore on its biggest-ever project in the country Godrej Garden City (GGC) in Ahmedabad, said Phirojsha Godrej, Managing Director and CEO. Overall, GGC and its local joint venture partner Sri Siddhi Developers, have invested $1 billion (Rs 6,000 crore) in GGC.
GPL also announced to deliver this month 624 apartments in 13 towers in GGC, launched in 2010.
GGC, a world-class integrated township master planned by the US-based Skidmore, Owings and Merrill (SOM), designers of numerous global landmarks including the Burj Khalifa of Dubai, has been supervised by Larsen and Toubro (L&T) in construction, he said.
“Despite the challenging economic conditions, we sold in Ahmedabad much more than elsewhere due to relative price stability here. We sold almost 85 per cent in phase-I of GGC, 20 per cent of which (one million sq ft) is now being delivered,” he said.
However, GPL has no immediate plans for a second project in Gujarat.
The weakening of the rupee and other reasons have encouraged NRIs to buy properties in Ahmedabad. While 10 per cent of apartments at GGC were bought by them in phase-I, 15 per cent have been bought subsequently, Godrej said.
Five of these projects have been launched this year.
The company has already invested nearly Rs 1,000 crore on its biggest-ever project in the country Godrej Garden City (GGC) in Ahmedabad, said Phirojsha Godrej, Managing Director and CEO. Overall, GGC and its local joint venture partner Sri Siddhi Developers, have invested $1 billion (Rs 6,000 crore) in GGC.
GPL also announced to deliver this month 624 apartments in 13 towers in GGC, launched in 2010.
GGC, a world-class integrated township master planned by the US-based Skidmore, Owings and Merrill (SOM), designers of numerous global landmarks including the Burj Khalifa of Dubai, has been supervised by Larsen and Toubro (L&T) in construction, he said.
“Despite the challenging economic conditions, we sold in Ahmedabad much more than elsewhere due to relative price stability here. We sold almost 85 per cent in phase-I of GGC, 20 per cent of which (one million sq ft) is now being delivered,” he said.
However, GPL has no immediate plans for a second project in Gujarat.
The weakening of the rupee and other reasons have encouraged NRIs to buy properties in Ahmedabad. While 10 per cent of apartments at GGC were bought by them in phase-I, 15 per cent have been bought subsequently, Godrej said.
Indians most committed to their employers: Survey
Mumbai: Indian employees are the most committed to their employers compared to their counterparts in other countries, according to a new survey. The Kelly Global Workforce Index survey “Employee Engagement and Retention” says as much as 50 per cent of Indian employees are totally committed. The survey added that India has, at 33 per cent, one of the lowest rates of job-change in the world.
Apart from India, the highest levels of employee commitment were found in Indonesia (43 per cent) and Malaysia (34 per cent). The lowest are in Hong Kong (15 per cent), Thailand (20 per cent) and Singapore (22 per cent).
The survey noted the key factor influencing job choice across all generations is personal fulfilment (work-life balance), nominated by 38 per cent globally. Another key factor is personal growth, at 29 per cent globally, but the data suggested this factor might be less important as people progress through their careers.
Compensation, which is often perceived as the single-most important reason for choosing an employer, ranks the third-most important at 26 per cent globally.
Across Asia-Pacific (APAC), an average 64 per cent of those who changed jobs in the past 12 months were happy in their new positions. In India, 75 per cent of the employees were happy with their new job and position, the survey noted.
Further, approximately half of the global respondents (52 per cent) said they are either happy or very happy in their jobs. The result in 2013 is a little changed from the figure in 2012. Those in APAC are consistently more content in their positions, with 63 per cent either happy or very happy, significantly higher than in the Americas (53 per cent) and EMEA (Europe and the Middle East and Africa) at 46 per cent. (EMPLOYEE CONTENTMENT: 2013)
“The way people feel about their work, view their work, and the manner in which they select certain jobs play an important part in the way workforce are developed and managed. There is a big challenge for employers in managing the on-boarding of new recruits so that they are productive and integrated well into the organisation. Simply changing jobs does not make for contented employees, and a big factor is the way managers and supervisors handle the transition,” said Kamal Karanth, managing director of Kelly Services India.
In order to gain some experience in a particular field, staying at a position within a company is vital. The survey observed that the lowest rates of job-change were in India (33 per cent), South Africa (21 per cent), Puerto Rico (30 per cent) and Indonesia (31 per cent). A key indicator of employee satisfaction is the willingness of an employee to recommend their employer as a preferred place to work. Twenty-eight per cent of those in APAC would be willing to recommend their employer to colleagues.
Employees consider many factors before deciding on the right job. The survey said that the prime consideration is location, cited by 54 per cent globally. A close second is ‘corporate brand and reputation’, nominated by 53 per cent. Other elements include employers’ business performance, culture, and benefits.
Individuals who are constantly looking for a job-switch are required to keep a constant eye on the job market. Globally, more than one-quarter (29 per cent) of job seekers look once or twice a week, and over one-third (34 per cent) look for a new opportunity on a daily basis. The most active job-scanners are in EMEA (59 per cent) followed by APAC (57 per cent).
Karanth explained that many workers have experienced a significant shift in their attachment and tenure of service with employers in the wake of the global financial crisis, and this phenomenon is still shaping the employment relationship. “It is imperative to look back and understand the root cause and work toward better employee retention strategies that help in employee work stability,” he said. The Kelly Global Workforce Index (KGWI) is an annual global survey revealing opinions about work and the workplace.
Approximately, 122,000 people across the Americas, EMEA and APAC regions responded to the survey.
This survey was conducted online by RDA Group on behalf of Kelly Services.
Apart from India, the highest levels of employee commitment were found in Indonesia (43 per cent) and Malaysia (34 per cent). The lowest are in Hong Kong (15 per cent), Thailand (20 per cent) and Singapore (22 per cent).
The survey noted the key factor influencing job choice across all generations is personal fulfilment (work-life balance), nominated by 38 per cent globally. Another key factor is personal growth, at 29 per cent globally, but the data suggested this factor might be less important as people progress through their careers.
Compensation, which is often perceived as the single-most important reason for choosing an employer, ranks the third-most important at 26 per cent globally.
Across Asia-Pacific (APAC), an average 64 per cent of those who changed jobs in the past 12 months were happy in their new positions. In India, 75 per cent of the employees were happy with their new job and position, the survey noted.
Further, approximately half of the global respondents (52 per cent) said they are either happy or very happy in their jobs. The result in 2013 is a little changed from the figure in 2012. Those in APAC are consistently more content in their positions, with 63 per cent either happy or very happy, significantly higher than in the Americas (53 per cent) and EMEA (Europe and the Middle East and Africa) at 46 per cent. (EMPLOYEE CONTENTMENT: 2013)
“The way people feel about their work, view their work, and the manner in which they select certain jobs play an important part in the way workforce are developed and managed. There is a big challenge for employers in managing the on-boarding of new recruits so that they are productive and integrated well into the organisation. Simply changing jobs does not make for contented employees, and a big factor is the way managers and supervisors handle the transition,” said Kamal Karanth, managing director of Kelly Services India.
In order to gain some experience in a particular field, staying at a position within a company is vital. The survey observed that the lowest rates of job-change were in India (33 per cent), South Africa (21 per cent), Puerto Rico (30 per cent) and Indonesia (31 per cent). A key indicator of employee satisfaction is the willingness of an employee to recommend their employer as a preferred place to work. Twenty-eight per cent of those in APAC would be willing to recommend their employer to colleagues.
Employees consider many factors before deciding on the right job. The survey said that the prime consideration is location, cited by 54 per cent globally. A close second is ‘corporate brand and reputation’, nominated by 53 per cent. Other elements include employers’ business performance, culture, and benefits.
Individuals who are constantly looking for a job-switch are required to keep a constant eye on the job market. Globally, more than one-quarter (29 per cent) of job seekers look once or twice a week, and over one-third (34 per cent) look for a new opportunity on a daily basis. The most active job-scanners are in EMEA (59 per cent) followed by APAC (57 per cent).
Karanth explained that many workers have experienced a significant shift in their attachment and tenure of service with employers in the wake of the global financial crisis, and this phenomenon is still shaping the employment relationship. “It is imperative to look back and understand the root cause and work toward better employee retention strategies that help in employee work stability,” he said. The Kelly Global Workforce Index (KGWI) is an annual global survey revealing opinions about work and the workplace.
Approximately, 122,000 people across the Americas, EMEA and APAC regions responded to the survey.
This survey was conducted online by RDA Group on behalf of Kelly Services.
Cabinet gives nod to flagship programme for higher education- RUSA
New Delhi: The Cabinet Committee on Economic Affairs last evening approved about one lakh crore Rashtriya Uchchatar Shiksha Abhiyan (RUSA). It is a new centrally sponsored scheme for higher education which will spread over two plan periods (XIIth and XIIIth). It will focus on state higher educational institutions. It will be a new flagship scheme of the government that will pave the way for far reaching reforms at the state level. A total of 316 state public universities and 13,024 colleges will be covered under RUSA.
The key objectives of RUSA are to improve access, equity and quality in higher education through planned development of higher education at the state level. It is proposed to improve the Gross Enrolment Ratio from 19% at present to 30% by 2020. It will help create new academic institutions, and expand the existing institutions, that are self-reliant in terms of quality education and professional management.
They shall be characterized by greater inclination towards research and provide students with education that is both relevant to them as well as the nation as a whole.
The funding will be provided by the Central and State Governments respectively in the ratio of 90:10 for North-Eastern States and Jammu &Kashmir, 75:25 for Other Special Category States (Sikkim, Himachal Pradesh and Uttarakhand) and 65:35 for Other States and UTs. Funding will be made available to private government-aided institutions also, subject to their meeting certain pre-conditions for permitted activities based on laid down norms and parameters.
RUSA will adopt a completely new approach towards funding higher education in state universities. The key principles for RUSA funding will be performance-based funding, incentivizing well performing institutions and decision making through clearly defined norms.
These principles will help establish and rely upon a management information system to gather the essential information from institutions.
RUSA will aim to provide greater autonomy to universities as well as colleges and have a sharper focus on equity-based development, and improvement in teaching-learning quality and research.
The reforms initiated under RUSA will build a self-sustaining momentum that will push for greater accountability and autonomy of state institutions and also to unleash the potential of the state universities.
In order to be eligible for funding under RUSA, states will have to fulfill certain prerequisites which include creation of a State Higher Education Council, creation of accreditation agencies, preparation of the state perspective plans, commitment of certain stipulated share of funds towards RUSA, academic, sectoral and institutional governance reforms, filling faculty positions etc.
Under the scheme, an initial amount will be provided to the State governments to prepare them for complying with the above requirements. Once eligible for funding under RUSA, after meeting the prerequisite commitments, the States will receive funds on the basis of achievements and outcomes. The yardstick for deciding the quantum of funds for the states and institutions comprise the norms that reflect the performance in key result areas (access, equity and excellence). The State plans will capture the current position of the states and institutions with respect to these indicators, as well as the targets that need to be achieved. The State Higher Education Council will undertake this process of planning, execution and evaluation, in addition to other monitoring and capacity building functions.
At the national level, the scheme will be implemented by the RUSA Mission Authority and assisted by the Project Advisory Group, Technical Support Group and Project Directorate. The main agency through which RUSA will work in the States will be the State Higher Education Council (SHEC), an autonomous body that will function at an arm’s length from the state and central governments. SHEC will be assisted by State Project Directorate and Technical Support Group. In every institution, the Governing Body and a Project Monitoring Unit will oversee the project progress.
The key objectives of RUSA are to improve access, equity and quality in higher education through planned development of higher education at the state level. It is proposed to improve the Gross Enrolment Ratio from 19% at present to 30% by 2020. It will help create new academic institutions, and expand the existing institutions, that are self-reliant in terms of quality education and professional management.
They shall be characterized by greater inclination towards research and provide students with education that is both relevant to them as well as the nation as a whole.
The funding will be provided by the Central and State Governments respectively in the ratio of 90:10 for North-Eastern States and Jammu &Kashmir, 75:25 for Other Special Category States (Sikkim, Himachal Pradesh and Uttarakhand) and 65:35 for Other States and UTs. Funding will be made available to private government-aided institutions also, subject to their meeting certain pre-conditions for permitted activities based on laid down norms and parameters.
RUSA will adopt a completely new approach towards funding higher education in state universities. The key principles for RUSA funding will be performance-based funding, incentivizing well performing institutions and decision making through clearly defined norms.
These principles will help establish and rely upon a management information system to gather the essential information from institutions.
RUSA will aim to provide greater autonomy to universities as well as colleges and have a sharper focus on equity-based development, and improvement in teaching-learning quality and research.
The reforms initiated under RUSA will build a self-sustaining momentum that will push for greater accountability and autonomy of state institutions and also to unleash the potential of the state universities.
In order to be eligible for funding under RUSA, states will have to fulfill certain prerequisites which include creation of a State Higher Education Council, creation of accreditation agencies, preparation of the state perspective plans, commitment of certain stipulated share of funds towards RUSA, academic, sectoral and institutional governance reforms, filling faculty positions etc.
Under the scheme, an initial amount will be provided to the State governments to prepare them for complying with the above requirements. Once eligible for funding under RUSA, after meeting the prerequisite commitments, the States will receive funds on the basis of achievements and outcomes. The yardstick for deciding the quantum of funds for the states and institutions comprise the norms that reflect the performance in key result areas (access, equity and excellence). The State plans will capture the current position of the states and institutions with respect to these indicators, as well as the targets that need to be achieved. The State Higher Education Council will undertake this process of planning, execution and evaluation, in addition to other monitoring and capacity building functions.
At the national level, the scheme will be implemented by the RUSA Mission Authority and assisted by the Project Advisory Group, Technical Support Group and Project Directorate. The main agency through which RUSA will work in the States will be the State Higher Education Council (SHEC), an autonomous body that will function at an arm’s length from the state and central governments. SHEC will be assisted by State Project Directorate and Technical Support Group. In every institution, the Governing Body and a Project Monitoring Unit will oversee the project progress.
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